Prague Leaders Magazine Issue 03/2013 by Czech & Slovak Leaders

global perspectives now available in Brussels

3/2013 199 CZK

Vlastimil Picek, Minister of Defence of the Czech Republic

ARMY OF RESPECT 1

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publisher’s note & contents

DEAR READERS, Summer is here finally after a very long and cold winter, followed by a short and not so warm spring. Spring and summer is a lovely time to watch nature awaken with its cascade of colors, sounds and scents. Many of us are headed for the countryside to enjoy nature, relax and read. Maybe a little sunbathing, hiking or time taken for the family. Unfortunately, we also had another flood disaster, with serious consequences for many people in the CR and other countries in Central Europe. It seems to me that nature is quite upset with what’s going on by the misuse of our inheritance on the planet and pays us back for our lack of understanding of the environment. On page 73, you can also read a very interesting article by our contributor Jonathan Wootliff concerning Food Waste. Spring and the beginning of summer has been very busy for me and my team, with many events of various styles and character for us to cover and for you, dear readers, to enjoy. I hope you’ll be thrilled by how hectic Prague and other areas of the country can be. It’s a smorgasbord of jubilee parties, seminars, conferences, cultural events, premieres, festivals and award giving events. For us it has been a record for coverage, although we could have done more if not limited to 140 pages due to postal tariffs. In this issue we are pleased to feature a cover article by General Vlastimil Picek, Minister of Defence of the CR and former Chief of the General Staff, with over 40 years of army service. Other interesting interviews in this issue include Miloslav Kala, President of the Supreme Audit of the CR, Mrs. Milada Tomková, Vice President of the Constitutional Court and Maxim Behar, Chairman of Hill+Knowlton CR and Chairman of the World Communications Forum in Davos, Switzerland. Other articles include those with Senator Miroslav Nenutil, Jan Hamáček, Vice Chairman of the Parliament, Zdeněk Štengl, Chairman of SPOZ, Pavel Kohout, member of NERV, Ing. Jiří Běhounek, the Governor of the Highlands Region and Petr Nosek, General Manager of Call 24 Assistance. From photo reportage, a few to mention include, Round Table by Comenius with Z. Stanjura, Minister of Transport, L. Minčič, Deputy Minister of Finance, L. Reshetnikov, Director of the Russian Institute of Strategic Studies (RISS), CFO Club, Victory Day at the Russian Embassy, National Day of the Russian Federation, Nadační Fond of Václav Klaus and Livia Klausová, Insurers Award at NBC, CESES Seminar, Zlatá Koruna gala event at Top Hotel. Let me share other good news regarding our webpage and the electronic version of Leaders Magazine. During the month of May, we had a record number of Czechs and those abroad accessing Leaders by the internet. 390,000 page views of the electronic version of Leaders Magazine for May 55,000 visits to our web page 24,600 unique visits With those lovely figures, I wish you all a very enjoyable summer.

Benk Aikell Aik ■ Benke benke.aikell@leadersmagazine.cz www.leadersmagazine.cz

events 12 Presidential Visit to Austria 13 Presidential Visit to Poland 14

The Ceremony for Hoisting the Flags of the Czech Republic and the European Union

15 Senate Hosted Representatives of Austria and Saxony 16

17th Leaders Magazine Advisory Board Dinner

20 Manager of the Year 34 Discussion Round Table of Comenius with Mr. Zbyněk Stanjura, Minister of Transport of the Czech Republic 37 Discussion Round Table of Comenius with Mr. Leonid Petrovich Reshetnikov, Director of the Russian Institute of Strategic Studies (RISS) 40 Round Table of Comenius Discussion Dinner with Mr. Ladislav Minčič, 1st Deputy Minister of Finance of the Czech Republic 46 Lions Club Prague Bohemia Ambassador 50 AČPM – Insurer of the Year 2012 52 AČPM – Better professional knowledge – better services for clients 56 Financial Director of the Year 2012

award ceremony/Patrik Choleva from Skanska

Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska, CFO Club Financial Director of the Year 2012 f page 56 60 Discussion meeting of the CFO Club: Economic Support Measures – How to Keep the Czech Republic in Black Numbers 63 Discussion meeting of the CFO Club: Current crisis of the Czech economy 68 Russian Victory Day Reception 72 Conference: Russian Business 74

Ceremonial Opening of XVIII. Season of the Prague Student Summit

BCC Golf Tournament 2013 and British Business Mixer and Golf Award Ceremony

80 Gala Evening of the Zlatá Koruna Competition 104 Endowment Fund of Livia and Václav Klaus Honored Sponsors and Volunteers

6 Leaders Magazine III/2013

contents 107 Conference: Risky Future for Europe and the Czech Republic: Are We Prepared? 112 5th Professional Meeting of Best of Magazine Held at ZOOM Restaurant 128 Meetings at the Czechoslovak Foreign Institute Attract Members

94 In Need of Change A talk with Zdeněk Štengl, the Chairman of the Party of Civic Rights-Zemanovci 100 Better Days Ahead? A talk with Pavel Kohout, Director of Strategy at the company Partners 120 Vysočina – A Different Kind of Region

5th Professional Meeting of Best of Magazine Held at ZOOM Restaurant

An interview with Jiří Běhounek, the Governor of the Highlands Region

Tomáš Sysel, Chef of the renowned Aquarius Restaurant

Kateřina Neumannová, Olympic medalist, Cross – country skiing and Petr Vichnar, sports moderator f page 112

Aquarius Restaurant f page 92

interviews 10 Army Of Respect

culture events

A talk with Vlastimil Picek, the Minister of Defence of the Czech Republic 30 I Wish „a Politician“ Stopped Being a Derogatory Word

77 Opera recital hosted by The Latin Art Gallery and Dallmayr Kaffee 114 Running For Art 13th Annual Miroton

An interview with Miroslav Nenutil, Vice President of the

125 La Femme Gallery on the Road

Constitutional-Law Committee of the Czech Republic Senate

132 Exhibition in the MIRO Gallery Prague

44 Call a Doctor Interview with Petr Nosek, Founder, Owner and Executive Director of

Exhibition in the MIRO Gallery Prague

CALL ASSISTANCE 24 54 Defence Cooperation in the V4 Format is Still in its Infancy A talk with Jan Hamáček, the Deputy Speaker and the Shadow Defence Minister (the Czech Social Democratic Party) 66 We Practice What We Preach A talk with Miloslav Kala, the President of the Supreme Audit Ofﬁce 73 An Interview with Alexander Raczynski, General Manager, GEFCO 78 Lady of Justice and Wisdom A talk with Milada Tomková, Vice President of the Constitutional Court of the Czech Republic 88 Maxim Behar An interview with Maxim Behar, Chairman of Hill+Knowlton,

From left: Zdeněk Šorf, Mgr. Petr Šťastný, Prof. Pavel Marinič, Ing. Lenka Týčová, Benke Aikell, and Miro Smolák

Czech Republic and Chairman of the Board of the World Communications Forum in Davos, Switzerland

f page 132

92 An interview with the Chef, Tomáš Sysel Chef of the renowned Aquarius Restaurant talks to us about his passion

Leaders Magazine III/2013 7

contents & info contributors 43 Where Can Our Brain Lead Us?/Ivan Pilný 49 Weird Weather – Is This Climate Change?/Jonathan Wootliff 53 Boom and Bust/Cristina Muntean 86 Why Babinecs mean Business/Elisabet Rodriguez Dennehy 87 People do Business with People they Like/Karin Genton 91

Digital Services or Broadband Europe’s Dilemma?/Evžen Tošenovský

96 Pavlína Rychterová, Austrian Academy of Sciences/ Linda Štucbartová 98 Pavel Černoch/ Linda Štucbartová 110 War for Talent and the New Age of Lifelong Learners/Jan Mühlfeit 115 Intercultural Communication/Martin Opatrný 124 And again recession…/Emanuel Šíp 126 ANGKOR – Victim of Its Own Success/Iva and Joseph Drebitko 130 Cosmic Consciousness – A Journey To Well-being, Happiness, and Success Part IX: Immortality/James A. Cusumano, PhD

Where Can Our Brain Lead Us /Ivan Pilný

The only thing we have to think with, at least I hope, is our brain… f page 43

EU matters 134 Research in Aviation: The Closer You Get to the Product, the More Confidence You Need! An interview with Eric Dautriat, Executive Director of Clean Sky Joint Technology Initiative 136 EU debate: REACH Impact on SMEs in Chemical Industry Must Be Mitigated 137 EU debate: Future of Transport Projects Depends on Quality of Their Preparation 138 Bussiness News

Leaders Magazine is a member of

Publisher: Benke Aikell Head of Editorial: Lenka Helena Koenigsmark Office Manager/Head of IT: Michael Serences Office Assistant: Tatiana Fominykh Webmaster: Václav Kocourek EU Matters: CEBRE Czech Business Representation, CESES, Europlatform Contributors: James A. Cusumano, Iva Drebitko, Joseph Drebitko, Elisabeth Rodrigues Dennehy, ELAI, Karin Genton – L’Epée, European Leadership and Academic Institute, Pavlína Holancová, Martina Hošková, Lenka Helena Koenigsmark, Jan Mühlfeit, Cristina Muntean, Martin Opatrný, Ivan Pilný, Emanuel Šíp, Linda Štucbartová, Evžen Tošenovský, Jonathan Wootliff, Photographers: Hana Brožková, Roland Hilmar, Anna Chlumská, Ibra Ibrahimovič, Martin Janas, Jakub Joachim, Ladislav Lenk, Jindřich Makovička, Ivan Malý, Filip Pokorný, Hana Schmerková, Jan Šulc, Robert Vano, Vladimír Weiss Subscription service: 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. Typos, tiskařské závody, s.r.o., závod Praha tel.: 266 021 230 techno@typos.cz www.typos.cz

Photos from the last Advisory Board Dinner

info 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 Mgr. Marta Gellová, Director, Česká pojišťovna and Member of the Board, AFIZ Michal Heřman, General Manager, Star Communications Plk. Mgr. Vladislav Husák JUDr. PhDr. Oldřich Choděra, Lawyer, Law Firm JUDr. PhDr. Oldřich Choděra & spol.

From left: PhDr. MgA. Miroslav Smolák, Owner, Galerie MIRO, Iva Drebitko, President, Triga, Patrons of Art and Joseph Drebitko, CEO, D&COMM

Prof. Ing. Kamil Janáček, CSc., CNB Bank Board Member and Chief Executive Director Ing. Peter Jusko, MBA, Partner, London Market Ing. Petr Kalaš, Advisor to the Minister, Ministry of Agriculture of the CR and former Minister of Environment Ing. Josef Kreuter, CSc., former Czech Ambassador to the EU Prof. Dr.h.c. JUDr. Jan Kříž, CSc., Partner, Law Firm Kříž a partneři s.r.o. Genmjr. JUDr. Lubomír Kvíčala, former Director of the Department of Protection of Constitutional Ofﬁcials, Police of the Czech Republic Ing. Vladimír Laštůvka, former M.P. Ing. Jan Mühlfeit, Chairman Europe, Microsoft Corporation Ing. Jiří Maceška, Chairman of the Supervisory Board, Česká pošta a. s. and former Czech Ambassador to OECD

From left: Ing. Petr Kalaš, former Minister of Environment, Jonathan Wootliff, former Director, Greenpeace International, Jan Malat, MD, NASA Neuroradiology Consultant and Mgr. Alena Kopejtkova, Lawyer, HK&R

George Parobek, Managing Director, Iﬁeld Computer Consultancy Šárka Parobek, Director, Iﬁeld Computer Consultancy Doc. Ing. Václav Petříček, CSc., Chairman of the Board of Directors of the Chamber SNS Ing. Jozef Piga, Member of the Supervisory Board, Omnipol a.s. 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. MgA. Miroslav Smolák, Owner, Galerie MIRO Mgr. Albin E. Sybera, Managing Director, Sybera Enterprises spol. s r. o. PhDr. Jaroslav Šedivý CSc., former Ambassador

Ing. Karel Muzikář, CSc., President, COMENIUS, Maureen Chang, Casa Serena, and Mr. Jim Chang

and Minister of Foreign Affairs JUDr. Josef Šesták, Assistant Professor, Vysoká škola obchodní v Praze, o.p.s.

ADVISORY BOARD COMITTEE

Ing. Radomír Šimek, current member of numerous

Benke Aikell, Publisher, Leaders Magazine Ing. Petr Kubernát, Director, PEKOS s.r.o. and former Czech Ambassador to the Netherlands Ing. Karel Muzikář, CSc., President, COMENIUS

Jaromír Šlápota, President, Československý

HONORARY MEMBERS ABROAD AND GOODWILL AMBASSADORS

Ing. Pavel Štefka, MSc, 4-star General (ret.),

H.E. William J. Cabaniss, former United States Ambassador to the Czech Republic Vincent J. Derudder, Secretary General, The European Federation of Financial Advisers and Financial Intermediaries Frank J. Devlyn, Rotary International President 2000–2001 and Rotary Foundation Chairman 2005–2006 H.E. Alexey L. Fedotov, former Ambassador of the Russian Federation to the Czech Republic Ing. Peter P. Formanek, President Emeritus, Canadian Chamber of Commerce in the Czech Republic H.E. Richard Graber, former United States Ambassador to the Czech Republic H.E. Jan Cornelis Henneman, Ambassador of the Netherlands to the Czech Republic Otto Jelinek, former Canadian Cabinet Minister and current member of numerous international boards H.E. Athar Mahmood, former Ambassador of the Islamic Republic of Pakistan to the Czech Republic H.E. 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

international boards ústav zahraniční Chief of Defence and Special Programs, Tatra Ing. Helena Švédová, HR Director, PSG International, a.s. Ing. Josef Tauber, Advisor to the President, Czech Banking Association Ing. Jiří Vávra, Vice Chairman, STROJEXPORT, a.s. JUDr. Petr Vyroubal, Partner,II/2013 Law Firm 9 Leaders Magazine Vyroubal Krajhanzl Školout

interview A talk with Vlastimil Picek, the Minister of Defence of the Czech Republic

ARMY OF RESPECT

In the current economic climate only a foolish optimist might assume that the army should get more money Currently you are “emeritus Soldier”. Is it a big change, so to speak, being a soldier in an ambush? My active military career came to its end. I’ve been wearing the uniform for more than forty years. I am very happy looking back on my memories. On the other hand, in the army, I went to the very top, and now I face a new challenge. The transition to civilian life was for me rather easier in the sense that I remained in a familiar environment. I changed from the position of the Chief of the General Staff and became the First Deputy minister of defense, and in the middle of March this year, I was appointed Minister of Defense, so it was not a step into the unknown for me.

10 Photo: Archive

Brieﬂy, what is your vision of the Czech Army? In this respect, did you take part in the new White Book 2011? I have always striven to maintain our military’s high proﬁle both at home and abroad, so that it may defend our country in case of danger, help people in need, and successfully accomplish foreign missions. It is of course necessary for the soldiers to have good facilities and conditions for training, modern equipment and weapon systems, and be adequately motivated for the demanding service. Of course, all this while respecting the real economic potential of our country. The path to this goal was shown in the White Book on Defence, the process initiated by my predecessor Alexandr Vondra. Thus, I got involved, together

with my colleagues at the time, in working on it really intensely. However, a document in question must take into account not only political issues, but also strategic and economic issues, as well as military expertise. In this respect, where do you see the main beneﬁts of the White Paper? The White Paper on Defense is a fundamental conceptual document that we missed since 1995. Our armed forces were given the vision that would determine the priorities of their development over the next ten to ﬁfteen years. In addition, the general public was given, together with the White Paper, information on how the funds would be used by the State for defense. Hereby,

interview the White Paper on Defense is a key document from which I and my closest associates of the defense sector come from. Last year, the government adopted a new Defense strategy for 2012–2020. What about it is fundamentally different from the previous defensive strategy? The defensive strategy of the Czech Republic for 2012–2020 replaces the Military Strategy of 2008 and builds on the key strategic documents of the Czech Republic and NATO, particularly the Security Strategy of the Czech Republic (in 2011) and the NATO Strategic Concept (2010). The main change lies in a more realistic view of the current possibilities of our army. While we have yet to declare the ability to send a brigade task force of several thousand people anywhere abroad, we are now ready to provide just such a unit in a collective defense within NATO. Moreover, the new defense strategy represents three key pillars of our defense. Could you be more speciﬁc? It comprises the government’s responsible approach, modern and operational forces, and conscious citizens. In other words, if our country is threatened, its defense is not just a matter of the armed forces, but the duty of all. The defense strategy also emphasizes that despite the ongoing economic recession, the state should not be allowed to weaken the army by further constraining resources. Thus, what expenditures are affected by cuts of the state budget in particular? Are you preparing any steps with regard to this issue? Believe me, I am not happy about the decline in defense spending, which brings various austerity measures and cuts. However, in the current economic situation only a foolish optimist might assume that the army should get more money. We have no other way than to most effectively manage the budget, which is a task that we were assigned. Nonetheless, the government has within its approved budget for the coming years measures to prevent further defense cuts, and thus has given the soldiers a positive signal concerning the perception of the current situation and the importance of the army.

the operational elements of the army won’t be affected by the austerity measures, much like our performance tasks at home and abroad. The new defense strategy, however, doesn’t include a more detailed elaboration of task performance elements to be dealt with in regard to the future “Plan for National Defense”. Can you tell us what it’s about? Of course, I am very happy to explain it for the broader public, as I suppose it won’t be a well known concept. It is a key planning document for the national defense. It speciﬁes principles for the preparation and use of state resources for defense, both in emergencies and for war. This document also sets out responsibilities aimed at various state bodies in order to ensure the national defense. Every four years, the update is done, however, if there are major changes in the risk assessment of national emergencies, or major changes in the available human, material and ﬁnancial resources required, then it is updated extraordinarily. Just last fall, our government, in connection with the approval of the new Defense Strategy, imposed a defense plan update. So we’ve just met the task and the updated Plan is currently being prepared for discussion at the National Security Council.

What areas are affected the most? Obviously, the areas which affect most economies are capital expenditures for development and modernization projects. There are several commitments from 2010 still moving ahead, and thereby meeting these obligations is undoubtedly complicated. We need to ﬁnd further savings within the system. During this year, the control and command structure will undergo a substantial downsizing, and thus eliminate duplication in the organizational structure and activities carried out. In addition, we recommend completing the transition to the new system of organizations to support activities at the Ministry (creation service agencies), and the army is preparing for its new structure, to be operational by 2014. However,

The Czech Republic has had a lease of 14 Swedish Gripen ﬁghters since 2004. At what stage is the decision made on a possible contract extension or a new call for tender? We’ve received a mandate from the current government to conduct negotiations with Sweden. This mandate still lasts and the talks continue. To comment on any other option would be premature at the moment. In early April, I commissioned my First deputy, Daniel Koštoval, to be the head of our negotiation team. On top of that, the Prime Minister Petr Nečas said clearly that our primary goal is to ﬁnd a variant that is the most advantageous from an economic point of view for the Czech Republic. This statement remains to be a starting point for further negotiations.

IN COOPERATION WITH LEADERS MAGAZINE

How has the Czech army been perceived within NATO, and especially those who are involved in various missions within NATO and the EU missions? During our NATO membership, our soldiers earned respect and recognition by joining the Alliance’s operations, exercises and command structures. From the senior representatives of NATO, the EU, and allied countries, I always heard laudatory words addressing many of our soldiers. Deployment in international missions, much like our participation in allied exercises, has been the true test of preparedness for our soldiers. So where are our troops at present? Since the nineties, our soldiers have participated in a dozen large and small foreign operations, whether in the Balkans, Iraq and now in Afghanistan and in Mali, Africa. Currently we have about 460 foreign soldiers who carry out their tasks in Afghanistan (ISAF), Mali (EU Training Mission – EUTM), Kosovo (KFOR), Bosnia and Herzegovina (ALTHEA), the Sinai (MFO), UK (HQ Anti-piracy operation ATALANTA), and under the auspices of the UN we have operates in the Congo, Kosovo and in Afghanistan five Czech military observers. How do you like to spend your free time? I am really very busy, and unfortunately I don’t have as much free time as I would like. Whenever possible, I try to spend time with my family, especially with the little grandson. Also, I can find time to relax in our cottage in Czech Paradise (Český ráj), where I have a large garden, where a lot of work is waiting for me. And of course, I try to keep fit and play sports. In the winter, I hang out on skis, and from spring to autumn I enjoy playing tennis. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 11

Hana Brožková – Archive KPR

presidential visit President Miloš Zeman and President of Austria Heinz Fischer

IN COOPERATION WITH LEADERS MAGAZINE

PRESIDENTIAL VISIT TO AUSTRIA On April 23 and 24, 2013, President Miloš Zeman with his wife Ivana Zemanová completed their state visit to Austria. They were welcomed by Heinz Fischer, the President of Austria, and his wife Margit. During their program, they also met with Michael Häupl, the Mayor of Vienna. On the second day of the official visit, the President met with Barbara Prammer, President of the National Council of Austria and Christoph Leitl, President, Austrian Federal Economic Chamber.

From left: Mrs. Margit Fischer, Mrs. Ivana Zemanová, President of the CR Miloš Zeman and President of Austria Heinz Fischer

From left: Miloš Zeman, President of the CR, Christoph Leitl, Austrian Federal Economic Chamber, and Dr. Nikolaus Seiwald, Trade Councellor, Austrian Embassy in the CR

12 Michael Häupl, the Mayor of Vienna at his speech

President of the CR Miloš Zeman and Christoph Leitl, Austrian Federal Economic Chamber

Hana Brožková – Archive KPR

presidential visit President of the CR Miloš Zeman and President of Poland Bronislaw Komorowski

PRESIDENTIAL VISIT TO POLAND On May 23 and 24, 2013, President Miloš Zeman with his wife Ivana Zemanová completed their state visit to Poland. They were welcomed by Bronislaw Komorowski, the President of Poland, and his wife Anna. During the visit, the President also met with Donald Tusk, Prime Minister of Poland, and Bogdan Borusewicz, the Marshal of the Senate.

President Miloš Zeman and Donald Tusk, Prime Minister of Poland

13 President of the CR Miloš Zeman and Donald Tusk, Prime Minister of Poland

President of the CR Miloš Zeman and Bogdan Borusewicz, the Marshal of the Senate

presidential visit

Photo: Hana Brožková – Archive KPR

On Wednesday, April 3, 2013, the President of the Czech Republic, Miloš Zeman and the President of the European Commission, José Manuel Barroso, participated in the ceremonial hoisting of the Czech Republic and the European Union flags at Prague Castle. Subsequently, the Czech President signed the decision of the European Union changing Article 136 of the Treaty on the Functioning of the European Union, regarding the mechanism of stability for member states using the Euro as a currency.

IN COOPERATION WITH LEADERS MAGAZINE

THE CEREMONY FOR HOISTING THE FLAGS

OF THE CZECH REPUBLIC AND THE EUROPEAN UNION

senate From left: Milan Štěch, Chairman of the Senate and Edgar Mayer, President of the Federal Council of Austria in the Senate of the Czech Parliament

IN COOPERATION WITH LEADERS MAGAZINE

Two significant representatives of our bordering partners – Austria and Saxony – visited the Senate in May. Edgar Mayer, President of the Federal Council of Austria, spoke in the Senate about Austrian employment policy, thanks to which our southern neighbors manage to keep their level of unemployment below 5%. Matthias Rössler, President of the Landtag of Saxony, came mostly due to preparations of the ‘Home – Central Europe conference: Faces, Biographies, Identities’ which will take place in the Senate on June 28, 2013.

From left: H.E Ferdinand Trauttmansdorff, Austrian Ambassador to the Czech Republic and Edgar Mayer, President of the Federal Council of Austria

From left: Ivana Červenková, chargé d’affaires for the Czech Republic in Vienna and Miluše Horská, Vice Chairwoman of the Senate

Milan Štěch, Chairman of the Senate, after the work-meeting with Matthias Rössler, President of the Landtag of Saxony

15 Work-lunch with Milan Štěch, Chairman of the Senate, and Matthias Rössler, President of the Landtag of Saxony

Matthias Rössler, President of the Landtag of Saxony (middle) at a work-lunch in the Senate of the Czech Parliament

networking / gourmet event

AT ALCHYMIST GRAND HOTEL & SPA

Benke Aikell, your Publisher welcoming all guests

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

From left: H.E. Jan Koukal, former Ambassador to Austria and former Mayor of Prague and H.E. Michael Calcott, former Canadian Ambassador to the Czech Republic

From left: Doc. Ing. Václav Petříček, CSc., Chairman of the Board, Chamber of Trade and Industry for CIS Countries, and H.E. Peter Brňo, Ambassador of Slovakia

16 From left: Peter Hradil, Managing Partner, Lydon Wells, and Ing. Petr Kubernát, Director, Pekos and former Czech Ambassador to the Netherlands

From left: Benke Aikell, your Publisher and Miro Smolák, Owner and Director, MIRO Gallery

From left: Genmjr. JUDr. Lubomír Kvíčala, PhDr. Jana Kozmová, CSc., Vysoká škola ekonomická v Praze, RNDr. Ing. Peter Kozma, DrSc., CEO, Securex, and Mrs. Hana Kvíčalová

From left: Peter Formanek, President Emeritus, Canadian Chamber of Commerce, Mgr. Vlastimil Ježek, Chairman/CEO, Obecní dům, and Miro Smolák, Owner and Director, MIRO Gallery Aleš Adam, Sales Director, Typos, printing house with his wife

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Ing. Pavla Běhounková, Headhunting and Recruitement Consultant, Dreamjob, and JUDr. Josef Šesták, Vice-Head of Department of Air Transport, VŠO

From left: Peter Hradil, Managing Director, Lydon Wells and Hannu Kasi, President, ABB CR

From left: Benke Aikell, your Publisher, Ing. Jiří Maceška, Chairman of the Supervisory Board, Česká Pošta, JUDr. Čestmír Sajda, MBA, Aspira Invest, and H.E. Peter Brňo, Ambassador of Slovakia

JUDr. Ing. Marek Dufek, Attorney with his wife Marta From left: JUDr. Josef Šesták receiving champagne, Vice-Head of Department of Air Transport, VŠO

From left: Doc. Ing. Václav Petříček, CSc., Chairman of the Board, Chamber of Trade and Industry for CIS Countries, and Prof. Dr.h.c. JUDr. Jan Kříž, CSc., Attorney and Partner, Kříž and partners with his daughter

17 From left: Gen. (Ret.) Andor Šándor, Security Advisor and General František Maleninský, Deputy Chief of General Staff of the CR

From left: Zdeňka Indruchová, CEO, Association of Czech Insurance Brokers and Peter Formanek, President Emeritus, Canadian Chamber of Commerce

From left: Ing. Fawad Nadri, President, Czech-Afghan Chamber of Commerce and Mr. Jaroslav Kubišta

Mgr. Marta Gellová, Director, Česká pojišťovna and Member of the Board, AFIZ and Ing. Jiří Musil, Member of the Board, ČSÚZ

From left: Aleš Adam, Sales Director, Typos, printing house and Jonathan Wootliff, former Director, Greenpeace International, now Sustainability Consultantand Journalist

Ira Saul Rubemstein, Partner, Traficon with his wife Lenka, renowned Portrait Painter

Martin Opatrný, Advisor on Media and Crisis Communication, Public Relations/Public Affairs and Lenka Koenigsmark, Head of Editorial, Leaders Magazine

Michael Serences, Office Manager/IT Specialist, Leaders Magazine and Tatiana Fominykh, Office Assistant, Leaders Magazine

Crystal Room at Hotel Alchymist

From left: Tatiana Fominykh, Office Assistant, Leaders Magazine and Ing. Helena Leisztner, Artist, Designer and Board Member of FNMWA with her husband Ing. Roland Leisztner

From left: Ing. Pavla Běhounková, Headhunting and Recruitement Consultant, Dreamjob, Oscar Starinský, Member of the Board, Czech Sport Aircraft a.s., and Ing. Peter Jusko, MBA, Partner, LondonMarket

From left: Jonathan Wootliff, former Director, Greenpeace International, now Sustainability Consultant and Journalist, and Michal Donath, Managing Director, DBM

From left: General František Maleninský and Mgr. Marta Gellová, Director, Česká pojišťovna and Member of the Board, AFIZ

From left: Ing. Miloš Janů, Managing Partner, Czech – Kuwait Trading, Dr. Hynek Kmoníček, Director, Foreign Affairs Department, Office of the President of the CR, and Petr Nosek, General Manager, Call Assistance 24 s.r.o.

From left: Petr Nosek, General Manager, Call Assistance 24, Alka Hájková, Managing Director, VIP osobnosti, and Ing. Miloš Janů, Managing Partner, Czech – Kuwait Trading

Excellent wine from Hotel Alchymist

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From left: H.E. Jan Koukal, former Ambassador to Austria and former Mayor of Prague and Dr. Hynek Kmoníček, Director, Foreign Affairs Department, Office of the President of the CR

manager of the year 2012 JUBILEJNÍ

. ROČNÍK

SOUTĚŽE

MANAŽER MA M ANA AŽ Ž ER ROKU RO R O KU KU

Best male Manager of the Year 2012, Jan Světlík of Vítkovice Holding, a.s. in Ostrava, with best female Manager of the Year 2012, Olga Kupec of ABYDOS, spol. s r.o. in Hazlov, in the Karlovy Vary region.

A morning international conference with subsequent discussion, was expertly hosted by best Manager of the Year 1999, Jan Mühlfeit of Microsoft Corporation

The best male Manager of 2012 is Jan Světlík, the General Director and Chairman of the Board of Vítkovice Holding in Ostrava. The best female Manager of 2012 is Olga Kupec, Director and CEO of Abydos in Hazlov in the Karlovy Vary region. “I don’t believe a good manager can run a milk factory one day and a forge the next. Knowledge of the field is critical, from then on all you have to do is work and not steal,” said winner Jan Světlík of Vítkovice. Together with the director, CEO and owner of Abydos, Olga Kupec, the First Lady of the automotive industry, they each entered the elite club of Managers of the Year, joining the previous winners of the competition. The Excellent Manager of a medium-size company (up to 250 employees) was Jaroslav Klíma, the Chairman of the Board of TESCAN in Brno. Excellent Manager for small companies (up to 50 employees) went to Libor Witassek from Opava, the Representative and Chairman of the Board of DC VISION. An example of successive generations of managers was Petr Blažek, winner in the Young Management Talent up to 35 years category, Director and Vice Chairman of the Board of production cooperative Dřevojas Svitavy. Blažek is the son of a laureate of this competition. 28 managers in various fields were named this year. Management icons Rudolf Černý, Vladimír Feix and Jan Wiesner were inducted into the Managerial Hall of Fame. The visit by Miloš Zeman, President of the Czech Republic, was a great honor for all participants, as he entered the hall during the awards to managers from individual fields. He then personally awarded Best Manager of the Year 2012 and, in a short speech, gave thanks for his invitation to the event, indicating he will be happy to provide patronage for next year. He called Tomáš Baťa to mind, as one of the most important founders of today’s Czech business environment and lauded current managers for naming their employees coworkers. He said he will give a number of managers a state honor on October 28th. President Zeman then toasted all successful people in the Czech Republic, regardless of which activities they focus upon: „To the health of those Baťa-like, not those Kožený-like!“

Stuart Schaag, Commercial Counselor of the US Embassy, made an appearance at the conference and briefly introduced a presentation by Lance Knowles

Tuija Hirvikoski, the Director of the Laurea University of Applied Science in Finland, stirred much interest at the conference. She said the vision of sustainable development is realistically applicable, on the condition of reaching a social-wide consensus on its fulfillment.

20 President Zeman lauded the work of managers and added that he will award many with state honors on October 28. From left: President Miloš Zeman and Jan Světlík, Manager of the Year 2012

Jan Muhlfeit’s hosting of the event was very lively, spontaneous, and dynamic. Participants in the audience watched him intently, as did Lubomír Stoklásek and Pavel Kysilka.

events

President Miloš Zeman and Pavel Kysilka, General Director of Česká spořitelna applaud the best Manager of the Year 2012

Last year’s winner of the competition, Lubomír Stoklásek, of Agrostroj Pelhřimov, shared experiences from his career and the Vysočina region at the conference

A beautiful bouquet for female Manager of the Year, Olga Kupec, will no doubt find its way to Hažlov, in the Karlovy Vary region

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MORE PHOTOS AND ELECTRONIC VERSION AVAILABLE ON WWW.LEADERSMAGAZINE.CZ

President Miloš Zeman awards best Manager of the Year 2012 to Jan Světlík.

manager of the year 2012

The afternoon discussion with politicians aimed to define what managers expect from the government. Among the participants were (from left): Rostislav Dvořák, Chairman of the Board of Directors of the competition, Jaroslav Hanák, President, SP CR, and Milan Štěch, President of the Senate

Finalists of the 20th Jubilee Manager of the Year competition, organizers of the event and members of both committees

The afternoon discussion with politicians aimed to define what managers expect from the government. Among the participants were (from left): Pavel Kafka, President, CMA, Radek Špicar and Jaroslav Hanák, SP CR and Petr Fiala, Minister of Education

The atmosphere in the grand hall of Žofín palace was very formal during the announcement of the results

Lýdie Procházková, Press Secretary of the competition, congratulates winner Jan Světlík and arranges his evening appearance on Czech Television. In the background, former Prime Minister Vladimír Dlouhý.

Jaroslav Hanák, President, SP CR and Petr Fiala, Minister of Education

22 Pavel Kysilka, General Director, Česká spořitelna

Radek Špicar, Vice Chairman, SP CR

Rastislav Lukovič, event organizer and Director of the Project Office of the CMA, along with Martin Pýcha, Chairman of The Agricultural Association of the Czech Republic

manager of the year 2012

IN COOPERATION WITH LEADERS MAGAZINE Ten of the best Managers of 2012 – awarded in the TOP 10 category Experienced managers were ceremonially entered into the Hall of Fame (from left): Rudolf Černý, Vladimír Feix and Jan Wiesner.

The finalists in the agricultural section of the competition used the blooming Slovanský Island for a photo, along with Jaroslav Šubrt, who represented The Agricultural Association of the Czech Republic (first from left) and Manager of the Year 2011, Lubomír Stoklásek (third from right)

Ing. Rudolf Gregořica, Chairman of the Board, LANEX a.s. Manager of the Year in Category: Production and processing of technical textiles.

Jaroslav Klíma, Chairman of the Board of TESCAN in Brno (third from right) won the title Excellent Manager of a Medium-Sized Company (up to 250 employees), the title Excellent Manager of a Small Company (up to 50 employees) was won by Libor Witassek from Opava, the Representative and Chairman of the Board of DC VISION. The awards were presented by Ciro Pistillo, founder of Gold Sirio (first from left) and Martin Diviš, the General Director of Kooperativa (fourth from left).

Ing. Jitka Janglová, Manager and Chairwoman of the Board, AGC Flat Glass Czech a.s. Manager of the Year in Category: Production and processing of non-metallic products.

Ing. Jaroslav Besperát, General Manager and Chairman of the Board, Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group Praha 23 Manager of the Year in Category: Banking, insurance and consultancy and 5th place in Manager of the Year of the CR.

interview An interview with Ing. Martin Doksanský, MBA, Chairman of the Board and the CEO of SMP CZ, a.s.,

Manager of the Year 2012 in Construction Industry It’s been nearly a year since we last spoke. What’s new in your life? I‘ll first mention what’s new at home – our oldest daughter completed her thesis and has her final state exam ahead of her, soon completing five years study at the University of Economics in Prague. Then she’s headed to university in England for a year. Both younger daughters fill our weekends with tennis matches and swimming competitions. All three make us proud and happy. Beyond that, I seem to have finally overcome my muscle injury and can get back into sports. And which sports are those? I like to ski, play tennis and, occasionally a bit of hockey. So your family are mostly sports enthusiasts... We like sport. My wife also plays tennis, so now we can even play doubles as a family. But that’s not our only hobby, our younger daughters play the flute, do ballet and ceramics. My wife and I like to go to the theater, along with big-beat and pop concerts. And we all love to travel, for example, last year we rented a car and took a trip in the highlands of Scotland. Beautiful! So your family life is rich with experiences. How is work? How is SMP CZ doing? Like most in the construction industry, we’re not exactly jumping with joy but, on the other hand, we’re realists and don’t complain too much. Specifically, we don’t want to complain about the world facing a recession, that’s simply a fact we

SMP CZ is owned by VINCI, one of the largest worldwide construction concerns. Speciﬁcally, VINCI Construction, which represents the building and construction arm of VINCI, owns 100% of SMP CZ. In turn, SMP CZ has three ﬁlial companies; Freyssinet CS (50% of shares of this company are owned by the sister company Freyssinet), ARKO Technology and SMS. Concurrently it is responsible for managing sister companies Průmstav and APS Alkon. The turnover of this entire group exceeds 4 billion CZK and the number of employees reaches nearly a thousand. SMP CZ has been active in the Czech market since 1990, and in the Slovak market since 1997.

Leaders Magazine III/2013

deal with and battle. What we do dislike and publically criticize is that, here in the Czech Republic, we‘re adding unnecessary complications to doing business in these inevitably cyclical problems of the world economy. What do you mean by that? Everyone knows that quarrels between individuals, groups and parties have always existed and always will. Even so, never before in our history did they end up as often as now in lawsuits and criminal proceedings. Adding the phenomenon of the overuse of negative news by all types of media, which they do because there is a demand for it, it’s no wonder we find ourselves in a situation where officials at all levels of public administration are afraid to make decision. They fail to lead open issues to logical conclusions. Or the legislative problems, the Construction Act enables those interested in slowing down construction approval processes to set a whole range of obstructions in the path. And the new law on public tenders opens the door to dumping prices and overloads the Office for the Protection of Competition with complaints and appeals. Can you be specific? I’m personally burdened by the absence of any final decision on the project for construction of a new water line for the Prague sewage-treatment plan. More than a year after the bid deadline and evaluation processes, we finally signed the contract in October of 2011. Ever since, we‘ve been waiting for orders to begin work. Until now, nearly a year and nine months since signing the contract, we don’t have the go-ahead and the reasons are exactly as I mentioned earlier. The concern of those responsible not to be accused of, or even sued over, some step that might be considered improper. And so they get expert analyses, followed by analyses of the analyses and committees are named, while we still wait. Another example would be a certain unnamed transportation construction. After a proper tender, where we submitted a bid at the lowest price, we were announced the winner approximately fifteen months ago. Since then, one of the unsuccessful bidders has repeatedly appealed the decision of the committee to the Office for the Protection of Competition. The reason is supposedly a dumping price. The project could have been built by now, but...we’re waiting... To be honest, your answers don’t sound too optimistic. Is everything really painted black? Of course not. I’m a lifelong optimist, but there is little doubt that we builders have a somewhat steeper hill to climb. But the solutions to the rea-

sons for these conditions in the Czech Republic are in our hands and they can change. This is also why I think it’s important to use every oportunity to point out these complication and try to change the status quo. And ﬁnally, tell us something about the most important construction projects you‘re working on right now. Among the transportation constructions, there are beautiful highway bridges in Prackovice on the D8 Highway from Prague to Ústí nad Labem and in Veselí nad Lužnicí, on the D3 Highway in Southern Bohemia. This elevated highway is nearly a kilometer long and its completion will bring much relief, primarily to the citizens of Plané nad Lužnicí and Veselí nad Lužnicí. It will be open for use at the end of June. In terms of industrial construction, an interesting example is the treatment of mining-water in Bílina, in the Ústí nad Labem region. In terms of water-management constructions, among the most signiﬁcant is the water-treatment plant in Mostiště, in the Vysočině region. Then there is a port being built in the wonderful environment of the Vltava near Hluboká, which is intended for sport use. Or our reconstruction of water-treatment plants in Ústí nad Orlicí and Mladá Boleslav. Of course, I could go on considerably longer. Compiled by LM ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Ing. Martin Doksanský, MBA, Chairman of the Board and the CEO of SMP CZ, a.s., graduated from the Czech Technical University in Prague, Faculty of Civil Engineering – Water Management. From 1986 to 2000, he worked in Vodní stavby Praha; then between years 2000–2002 in Skanska IS, IPS Skanska and Skanska CZ. In 2002, he became the CEO of SMP CZ.

interview

INDUSTRY SECTOR MANAGER

OF THE YEAR 2012 An interview with Ing. Milan Macholán, Chairman of the Board of Directors and Managing Director, První brněnská strojírna Velká Bíteš, a. s. První brněnská strojírna in Velká Bíteš, thanks to its core products – small aircraft turbine engines and auxiliary power units – is known throughout the world. In December of 2012, the firm was named “Company of the Year 2012” in the Czech Republic. Congratulations on your victory, Mr. Macholán in the Manager of the Year competition. Can you please acquaint us with the history of your company? První brněnská strojírna Velká Bíteš was established in 1950 as part of the PBS group, whose history dates back to 1814. In 1991, the Company was transferred into a joint stock organisation. New and varied fields were gradually added on existing production programs, such as turbochargers, precise castings, aircraft production, steam turbines and surface treatments. Production is based on a particular portfolio, but our main advantage is flexibility. We are able to reach out to customers all over the world, with the ability to adapt to customer needs and by modification of our product lines. The most interesting markets for us are clearly Russia, China, Germany and Switzerland, although lately we have seen growing demand from India and the U.S. What do you consider your most interesting operational area? Definitely aviation. První brněnská strojírna Velká Bíteš once belonged among the major suppliers of Aero Vodochody, a manufacturer of L39, L59 and L159 aircraft. When the serial production of L159 aircraft ended, we began to search out new opportunities – in the development of a new jet engine, the TJ100. The superiority of that engine lies in the fact that it is relatively efficient and very small. It weights 20 kg, including control electronics and its electrical generator. Regarding weight-ratio and dimension to the thrust, it is currently the best engine in its category in the world. Nearly 100 units were sold last year, particularly in Russia, China and the United States. In the context of aviation production at Velká Bíteš, we must mention our very successful Safír auxiliary power units, an international APU that is used to start up aircraft engines, including their on-board power supplies, for aircraft and helicopters. In the beginning, some of our contractors didn’t believe we would succeed with Safír in the global market and nowadays it is our largest revenue product. I would also mention the development and production of air conditioning systems for aircraft and helicopters and airport auxiliary power sources for pre-flight systems on aircraft and helicopters.

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Can you tell us a bit more about other areas of your business? In the area of precise castings, our major products are blades for combustion and steam turbines, as well as blade-segments for these industrial turbines. In the automotive, rail and shipping industries, our production focuses on precise castings, turbine wheels and superalloy-blades for turbochargers. The company is also focused on ecology, manufacturing decanting centrifuges for waste-water treatment plants. We also provide solutions in the area of healthcare, such as femoral components as knee replacements or components for mammographs. Additionally, První brněnská strojírna Velká Bíteš has special programs – helium expansion turbines, operating at a speed of 300,000 rpm, used in the process of liquefying helium gas and cascade cryogenic compressors that are used, for example, in the Swiss particle accelerator at CERN. What are the economic results of your company? The year 2012 was actually the best in our modern history. The initial revenue plan of 940 million CZK was exceeded by 160 million, mainly due to larger orders in the field of aviation. Last year we invested over 100 million in technical development and another 100 million into new technologies and to improve living and working environments. PBS began to operate new test room for aircraft engines at a first class level, as well as a new Swiss grinder for producing blades for turbines and turbochargers. We also purchased several new machines operating in five-axis, serving to enhance the production of auxiliary power units for helicopters and aircraft engines, along with reconstructing the company wastewater-treatment plant. What about your international activities? První brněnská strojírna Velká Bíteš is very active in its European cooperation. Within the ESPOSA consortium project (Efficient Systems and Propulsion

for Small Aircraft), subsidized by the European Commission, PBS manages a total of 39 partners, including Britain, Spain, Russia, Ukraine and Turkey. Among those managed are seven companies from the Czech Association of Aircraft Manufacturers. One of them is the Aeronautical Research and Test Institute, which helps PBS with the administrative management of the project. One result of the project will be reducing fuel consumption and weight of engines, improved engine control systems and the optimization of engines to be installed on new aircraft. And the future? We expect to succeed in global markets with a new TP100 turboprop engine for airplanes and a TS100 turboshaft engine for helicopters, with a new and powerful type of APU and air conditioning system for aircraft and helicopters, with new types of blades and turbine wheels for turbochargers, aircraft engines, APU and industrial gas turbines, as well as expand our portfolio of decanting centrifuges for waste water treatment. Gradually, we expect to increase our market-share in existing markets and capture new and interesting markets around the world. Thank you for your time. By Lenka Koenigsmark ■

The company is a world-renowned manufacturer of small aircraft turbine engines and auxiliary power units, air conditioning systems for aircraft and helicopters, standby turbine power supplies, precise castings for automotive, aerospace, power, glass and healthcare industries, as well as decanting centrifuges for waste water treatment plants, i.e. products directly related to ecology and the protection of the environment. Thanks to large sums invested in technical development, the company is able to compete with even the largest global manufacturers, especially in the area of precise mechanical engineering and precise castings from superalloys. Company activities include design, technology, preparation of production, manufacture, assembly, testing and comprehensive servicing with regard to customer requirements. It has its own plating shop, providing high quality surface treatment.

Leaders Magazine III/2013 25

interview An interview with RNDr. Roman Hrnčíř, CSc., Chairman of the Board and General Director of Severochema Liberec. Mr. Hrnčíř, once again accept our congratulations for your award as Manager of the Year – you won the award in the Chemicals and plastics category. What does this award mean to you? The award of Manager of the Year is a big honor for me personally, but also for our entire organization. It supports building the awareness of our business and our product lines, as well as a great motivation and commitment to my future work and the overcoming of obstacles that appear almost daily. And, as I told my colleagues, it is a positive motivator for them and most of the staff as well. You have many years of experience at Severochema, actually having worked for this company for almost 30 years. Can you tell us how the company has changed during that time? What changed for you? I joined Severochema in 1984, as an employee of Development department and I worked there for many years. I got more involved in the team when I began to work in the phase of production preparation and, after that, especially during the challenging task of creating and implementing an integrated management system meeting ISO standards. The big change for me was when I was elected Chairman of the cooperative, that I have occupied since 2003. Gradually, I realized that I must learn more and that in such a position one must learn and improve constantly. And if one persistently works jointly with his team, pursuing a common goal, good results can be achieved. I must say, there have been many changes since

1984. Not only has the regime changed – Czechoslovakia is no longer a socialistic state, but both republics are members of the EU and production based on the old state plan has transformed itself into a competitive fight. I think that over the last few years, we have managed as a team to build a company that has a future and a perspective. It‘s a company that respects values such as trust, team support, customer service and quality. Severochema celebrates its 60th anniversary this year. How will you celebrate this important milestone? Severochema was established in 1953, based on the tradition of chemicals that were produced here since the 19th century. We would like to celebrate this anniversary together, with all our employees, members of the cooperative and former members. Therefore, apart from a brochure and several activities in the media, we are going to have a customer event where we plan to present the past, present and future of our cooperative. How does Severochema perform nowadays, when let’s agree the situation is somewhat more difficult because of the crisis? Has that influenced your exports? The current period is truly not easy for us – a combination of high oil prices, a strong dollar and caution among our customers, who spend less after careful thought. We do everything we can to eliminate the impact of these aspects, for example via our exports, which grew by 20% year-on-year, as well as through innovation and improved ser-

vices. Our total revenue in 2012 grew by 5% and it was not a question of price increases, as currently the word ‚price increase‘ is forbidden by our customers. I also believe, thanks to the recognition in the Manager of the Year competition, that we are dealing successfully with the current situation. Your portfolio includes many interesting categories, from cosmetics to an anti-graffiti program. Which products are currently the most popular and which category the fastest growing? Severochema is the market leader in Central Europe in the category of fire-lighters and barbecue accessories. Our PE-PO® brand is known to the customers in the Czech Republic and abroad. We attained a significant market position in the field of thinners and technical liquids that are soughtafter by professionals for their quality. We are newly concentrating on the issue of graffiti, where we offer a wide range of cleaning and preventive products including an application service. We see a great potential for the future in this product line. In general, we can say that we focus more on special cleaning applications than products for standard use. RNDr. Roman Hrnčíř, CSc. has worked in the cooperative for 28 years, initially in the Development department and later as a quality manager and in the past years, as Chairman of the Board and General Director.

interview An Interview With Vladimír Králíček, General Director of J.K.R. and Manager of the Year 2012 in the ICT Category

VLADIMÍR KRÁLÍČEK

FROM PŘÍBRAM TO PREMIER LEAGUE Manager of the Year in the ICT category of 2012 was bestowed upon Vladimír Králíček, a company software business enterpreneur, who started his business back in nineties. His company, J.K.R, based in Příbram, provides information Byznys ERP systems for the effective management of businesses and, over the past 20 years, with sales of over 125 million and more than a hundred employees, has become one of the largest purely Czech enterprise software companies. Byznys ERP systems has a record of more than 1,500 successful deployments at companies from all areas of business. You received a significant award as Manager of the Year in the ICT category in 2012. How do you feel about it? A few months ago, I was told that someone had nominated me for Manager of the Year 2012 in the area of IT. Then I was asked to confirm my nomination, completed of the questionnaire and was subjected to an “interview” by the evaluation committee. Then the invitation to Žofín came, like three years ago. And when it was announced that I had won ‚my‘ category, many things rushed through my head, personally and workwise as well. I realized what I and my company had achieved. The boy from the village of Buková, near Příbram, was now in the company of people who have achieved something, who mean something. I thanked my parents to the sky for how they raised me, what they led me toward, thanked my wife who supported me, especially in the early years, thought of my son and his girlfriend, who gave us a beautiful little granddaughter, Leontynka ... How is the award connected with the development and results of J.K.R company? Here I see a direct link. Without my colleague partners, without the employees of J.K.R, I would never have received this award. The results of 2012 are perfect and we are continuously growing. I’m happy with that, but not overly, because it does not satisfy me. This is not about greedy ambition, but about the fact that we still need to work harder to maintain our position and further develop. Who fails to do it like that, ends the business, which I would definitely not like to do. What is your bible (mantra) you use in managing the company and what are your experiences? I am village boy, my intelligence is congenital rather than acquired. I’m not the studying type, I rarely studied a manual for anything. Since childhood, I loved to listen to older people, watching them at work. At any work! My “Old Uncle” was a bricklayer and worked until the age of 80 and it was a joy to watch and help him. I can handle any manual work and appreciate it. I learned from the beginning to look at each company process as my own, that the cost crown is my personal expenditure and that a poor kitchen spreads faster than good one. These are essential things and no tables, analyzes can replace them! If you started a business now, what would you be tempted to do? There were and still are many ideas. It is important to evaluate the feasibility and usefulness of such involvement. I am attracted by the area of sport, the develop-

IN COOPERATION WITH LEADERS MAGAZINE

ment of nature and many things attract me ... But for now I want to focus on my current operations and eliminate the problems we still have. If you got a chance to change any decision you ever made, what would that be? Fundamentally, I would have maintained the system and chosen people into the system to implement it. That is the downside of every Czech company, having people beforehand and building a system around them. Avoiding this is an advantage to large multi-national companies. If you had to look for a job now, what you would like to do a for living and what do you think you could offer your potential employer? It scares me sometimes, but also gives me energy, to be employed somewhere after 22 years in business. Hopefully that will not happen! But I’m sure I’m able to offer the same thing that I do now. Drive, invention, striving toward the goal, maximum loyalty, a constructive view of conflict and the finding of solutions. How do you reflect on the development of Czech society from 1989 to the present? I perceive the development of Czech society very negatively in recent years, although I still believe that it must change and we will not be eliminated by ants. Negative things unfortunately prevail – when I see what has been missed so far, what has been blown away and ‚stolen‘. In particular, how the basic premise that the role of the state will and must shrink, was not achieved and nowadays the state is in thrall to Europe and regulates in unnecessary areas, such as the curvature of bananas or shape of carrots. For this, we have to thank former President Klaus. But otherwise, in the positive sense, despite all, it’s beautiful here in the Czech Republic, there are a lot of great people and great ideas ... How do you feel about the current economic and social situation in the Czech Republic?

Photo: Archive

It depends. It will be very difficult, but on the other hand this is a perfectly normal condition for our level of civilization. Good days have passed, now the times are as they are and from a complete view of the world, not just the West, it’s actually great. Crazy things happened in education – since 1989, things have gotten worse, expectations are lower, there are still reforms of reforms, education funding is reduced, yet we still say our society should be more educated. Sport are closely linked to human character and see what the state and ‚responsible‘ people in CSTV did to Sazka and the financing of sport. Hušák laughs and owns vineyards in Mallorca, while in China he would perhaps be shot. The state puts more and more burden on citizens and businesses. Unfortunately, I am not optimistic in these areas. If you suddenly got, let’s say, tens or hundreds of millions of crowns, what would you do with them? How would you invest? Crowns I would selfishly keep to myself and my family, with tens I’d build a complete sports complex for high performance sports. If it were hundreds of millions – similar sports complexes and, in needed areas in the world, I would build wells for drinking water and plant trees for rainforests for the future generations. Compiled by LM ■

Vladimír Králíček (50) graduated from the Czech Technical University, Faculty of Mechanical Engineering, Department of Process Control Technology. In 1991 he co-founded the J.K.R.company, where he was responsible for managing product and business development. In 1995 he became sales director and since 2004 he has been CEO, with responsibility for the operation and strategic direction of the company. Under his leadership, the J.K.R. Příbram company, a small firm, has grown to over one hundred employees and offices across the country, one of the leaders in corporate ERP systems. In 2009, Vladimír Králíček became Manager of the Year finalist in data processing and software services and this year was awarded Manager of the Year in the category of Information, Communication Technology and Consulting. In his free time, Králíček has long been involved in the management of one of the oldest football clubs in the country – SK Spartak Příbram, where he is known for his care over the development of young footballers. Vladimír also likes to travel, is dedicated to diving and an expert in Spanish wines.

Leaders Magazine III/2013 27

interview

An interview with Andrea Pfeffer-Ferklová, MBA, General Director, Grandhotel Pupp Andrea Pfeffer-Ferklová began to work at the Grandhotel Pupp in 2001 in its Marketing Department and became General Director of the hotel ﬁve years later. She was born on January 1st, 1975 in Sokolov. After grammar school in Karlovy Vary, she graduated at the University of Economics in Prague. Mrs. Pfeffer-Ferklová, could you describe the Grandhotel Pupp for us, its history, present and future, as seen through your eyes? The Grandhotel Pupp is steeped in history. It is both unique and easily gets under your skin. Talking about its history would take a while, because it dates back to 1701. The Grandhotel Pupp is a place to meet the stars of the silver screen during the annual International Film Festival, as well as a location providing numerous options for corporate or gala events. Franz Josef stayed here, Spanish King Juan Carlos and Czech President Václav Havel. The hotel is visited by more then 5,000 guests from all over the world each year. You have been general director of the hotel for more than six years and, under your administration, Grandhotel Pupp has been proﬁtable for several consecutive years. However, you began as a marketing manager. Describe your journey to the directorship. I worked for the hotel since 2001, when I had the opportunity to begin working as marketing manager. After three years, I was offered the position of head of sales and, since 2006, had the honor of leading this beautiful and famous hotel. I‘m very fortunate to have had

a chance to work in varied positions and thus to better understand the operation of the hotel. What do you consider the biggest success during your time at the Grandhotel Pupp? Our new Pupp Royal Spa, opened in April of this year and gives me the greatest joy of all. It was a long awaited dream come true for all of us who work at the hotel, knowing how much this addition to the hotel was needed. I greatly appreciate my relationships with colleagues, who understand that working at a hotel is a mission that can only be accomplished with deep understanding and great taste. It is extremely difficult to maintain interest in employees for what they do, care about and why they are key to our success. What can the Grandhotel Pupp – such a well established and well known hotel – offer that’s new to its clients? Well, definitely the Spa and wellness center. Beyond our beautiful and unique pool, we offer a full range of various treatments and relaxing massages. We also now offer a cooperation with Esthé, a renowned plastic and laser surgery clinic. What features define the new Pupp Royal Spa? Undoubtedly, the range of curative treatments and personal comfort. The new space features the latest devices currently on the market. Guests are encouraged to indulge themselves in irresistible comfort and savor our services at the very highest levels. Adjoining the Pupp Royal Spa you are introducing a new clinic – a branch of the established Esthé plas-

tic surgery clinic, led by docent Měšťák. What types of medical interventions will you offer in your clinic? The clinic should begin full operations in June and will offer standard procedures such as nose and eyelid surgery and breast enhancement, as well as noninvasive laser treatments. The spa complex is unexpectedly set in the courtyard – who came up with this idea? The project is the work of architect Karel Mrazek and his architectural studio, KAAMA. He managed to perfectly combine more than 300 years of history with the present use. Modern materials, reﬂecting current trends, were chosen for the new space in sensitive contrast to the neo-baroque facade of the Grandhotel Pupp. I assume your clientele will fundamentally change with the new concept. Deﬁne your typical future guest. All these improvements create an entire concept that must be perfectly in tune. We have guests from all over the Czech Republic, as well as abroad. We believe they will remain faithful to us and our new services will appeal to guests who previously looked for relaxation in other places. However, It is important to note that this is not just about the hotel itself, but also about the city and country the client chooses for such luxurious and specialized treatment. All these factors create a complexity that must be fully harmonized. By Lenka Koenigsmark ■

ABB CR – LONG TRACK RECORD OF INNOVATION How it started? In 1883, the National Theatre was re-opened in Prague, American physicist Nikola Tesla designed the first-ever AC motor and Ludvig Fredholmem in Stockholm founded Elektriska Aktiebolaget which gave rise to ABB, the world’s no. 1 power and automation company. Throughout the years ABB’s success has been driven particularly by a strong focus on research and development. The company maintains seven corporate research centers around the world and has continued to invest in R&D through all market conditions. The result has been a long track record of innovation. Many of the technologies that underlie our modern society, from HVDC power transmission to a revolutionary approach to ship propulsion, were developed or commercialized by ABB. Today, ABB stands as the largest supplier of industrial motors and drives and the largest supplier of power grids worldwide. Among many other technical and technological innovations we can thank to ABB for the electrification of railways or the design of the first industrial robot. By the way ABB robots are now helping the European Organization for Nuclear Research (CERN) in Switzerland discovers the secret of the Big Bang. This said, it comes as no surprise that MIT Technology Review, Massachusetts Institute of Technology’s official scientific and technology journal, has listed ABB among 50 leading global innovators in 2013. The company puts strong emphasis also on business ethics, and the success of this strategy has been testified by Institute Ethisphere’s naming ABB among the world’s most ethical companies in 2013. Being part of the Czech industry ABB products have a long and successful tradition in the Czech Republic being ubiquitous not only in industry, but also in everyday life. ABB is no. 1 supplier of wiring material in the Czech market and its switches and sockets are present in an endless number of housing units, in office and industrial buildings, as well as in such exclusive places as the representation halls of the Prague castle or the Sazka Arena. Looking at the business mathematics the company has invested more than CZK 4 billion yet on the Czech market with the record-breaking investment volume last year reaching almost CZK 600 million (in Brno, Ostrava and Prague). Increased forecast for this year should bring even CZK 800 million of investment. ABB Czech Republic belongs to the leading countries, covering the cluster of Hungary, Slovakia and Ukraine.

Czech achievements The highlights of the Czech subsidiary’s achievements include the order for Facebook’s new data centre to be set up in Sweden, about 100 kilometers from the Arctic Circle. ABB Czech Republic has also supplied equipment to the world’s tallest building, the Burj Khalifa tower in Dubai (828m) and the latest major order worth about USD 35 million is the complex delivery of electric and automation equipment to the thermal plant in Turkey. Modernizing the electrical grid, ABB is one the pioneers of Smart Grids and takes a part in the Smart Region pilot project, which is being implementing by the ČEZ Group in Vrchlabí. A huge opportunity for reducing CO2 emissions brings the eMobility field as well supported by ABB which was the first to launch a quick-charging station for electrical cars. Not to be missed in the list of ABB’s achievements is the cyber security. ABB delivers complex solutions, including the analysis of existing system from the point of view of cyber security and current risks. The support of local communities, science and innovations Local communities and people strategy play an important role in business continuity and growth for every company. ABB seeks to make a difference to the communities where it operates and has on a long-term basis partnered with nonprofit organizations in integration and education, supporting the social integration of physically and mentally handicapped people in all countries it operates. Improving the learning opportunities and raising qualified engineers ABB is helping develop young scientific and technical talents, supporting the Czech Heads competition and the Association for the Support of Youth, Science and Technology as well as organizing its own ABB University Award for the best student work.

ABB s.r.o. – global leader in power and automation technologies – based in Zurich, Switzerland – employs 145,000 people and operates in approximately 100 countries – ﬁrm’s shares traded on the stock exchanges of Zurich, Stockholm and New York – business comprised of ﬁve divisions – on 8 locations in the Czech Republic, including production, R&D and engineering centers, employing 3,200 people

An interview with Hannu Kasi, General Manager, ABB ČR

The Czech market still has a lot to offer – beside of its location in the center of Europe it is mainly the technically skilled labor force that makes the Czech market attractive, indicates Hannu Kasi, the President & Country Manager of ABB ČR during a short interview in which he shares his views both on the current situation in the CR and his own reflections on living in the Czech Republic. Why is ABB so dedicated to the Czech market? Our dedication to the Czech market is based on several factors, the main being that – apart of the long engineering tradition – the Czech market offers high quality engineering education that delivers engineers with unique combination of professional expertise and out-of-the box attitude to solving technical and other challenges. Also, though the labor cost in the CR is not the lowest one, the productivity remains on a very good level. Last but not least, being on the Czech market means that we are close to the CIS and its market. Where do you see the biggest chances for the Czech companies and economy? In my opinion it is the European union and its common market that offers huge opportunities waiting to be captured by the Czech companies. Another positive factor is the location in the center of Europe that enables the CR to play the role of the connecting point between the west and east. This is a chance the Czech companies should take advantage of. Should you have a chance to let the Czech decision makers know your three wishes regarding the Czech economic and political environment, what would they be? I wish they invested more in education, especially the electrical engineering one, took efficient measures to reduce bureaucracy and listen more to companies to know what these companies need in order to grow and thrive. You come from Finland and so far you have lived and worked in six different countries. Is there anything you miss in the Czech Republic? As I have always lived next to the sea I personally miss it here. On more general level, I miss long term planning within the society – there is no long term, stable approach to anything including taxes and other highly relevant issues. And what do you like most in the Czech Republic? As I have already indicated the environment here is constantly changing and brings in many challenges. What I admire in this respect is the ability of Czech people to flexibly adapt to these changes and move on. Compiled by LM ■

Leaders Magazine III/2013 29

interview

An interview with Miroslav Nenutil, Vice President of the Constitutional-Law Committee of the Czech Republic Senate

interview Are you satisfied by the results of presidential elections? For the first time, the head of state came from the will of a majority of this nation. I hope the President will succeed in convincing the citizens that the Czech Republic, despite not being among the largest and most populous countries, can play a significant role in Europe, as long as its representatives are readable to other states and at least similar in their opinions. All this is subject to mutual listening and a willingness to look for solutions that are acceptable and dignified for our country. Who did you support? The elections were confidential. In the first round I supported Jiří Dienstbier and in the second round Miloš Zeman, and I’m sorry Dienstsbier didn’t get to the second round. In which ways was he a good candidate? Unlike both finalists for the presidential elections, he did not divide the society, but to the contrary, was able to connect layers and groups of people for whom Czech politics were a side issue at the time. I’m particularly thinking of young people, the middle class and entrepreneurs. Do you feel that people have returned to thinking about public issues? You know, I’m from Šumava and I speak to people directly and clearly. This is what the nation wanted, the nation got it and they‘re stunned. You now hear about the huge amounts of wasted money. I really often feel we don’t even know what exactly we want. When we get it, we don’t know what to do with it. Of course I would like people to get involved in public issues even after the elections are over. Unfortunately, the reality is a bit different. What should the ČSSD strategy for the next parliamentary elections be? What do you personally see as a priority in case the Social Democrats win the elections? I’m not a member of the ČSSD leadership, but I assume we will present proposals that will lead our country to prosperity as it was during the previous ČSSD government. I wish the conditions for a pro-growth economy were created. We don’t want our school graduates to end up in labor offices. I wish the state would manage to take care of those in need and ‚a politician‘ stopped being a derogatory word. Isn’t that an impossible task in today’s economic crisis? There’s nothing else we can do, except find solutions that benefit of the whole country and not just a narrow group of individuals. It’s important we become a social state, but not a social state at all costs. Can you specify? Even a small state must create conditions where people can live with dignity. Today we see that the state is paying a lot of support where it wouldn’t have to. That’s a failure in the system, that it can’t manage to control the social-care support entitlement. I see great reserves in this area.

IN COOPERATION WITH LEADERS MAGAZINE

In this regard, ČSSD is attempting to cancel the S-Cards. Can you outline this proposal of a Senate law for their cancellation? The lack of unity and decision-making by representatives of the governmental coalition in this matter only proves the ČSSD request to cancel the S-Cards is correct. They are too impractical to serve as a reliable credit card for older citizens and too expensive to be simply an ID card. How do you view the transformation of The Institute for the Study of Totalitarian Regimes? I’d dare to say that until this case swirled up, probably three quarters of the citizens had no idea of the existence of The Institute for the Study of Totalitarian Regimes. In my view, it’s now been made a country-wide issue on purpose. Every nation should confront those parts of their history they’re not proud of. That was supposed to be the main task of this institute. I’m not qualified to evaluate the beginnings of the ISTR activities, but in the last three years I was aware of the ISTR annual report that is presented to the Senate by the board of the institute under law. I must say that a large number of the comments and proposals from the Senate were accepted by the director. Currently, the conditions for research and viewing individual files are perhaps most liberal of all the post-communist countries. Only a person unfamiliar with the operation of the institute can say that there is some ideology trying to overcome it, in order to discredit possible opposition. Is the ISTR supposed to explain history? I don’t think the ISTR was founded to do some deep, thick line on one side and explain history on the other! It was supposed to collect all the materials that were here and make them accessible to the public. Anyone interested could access all files and this is the most liberal approach of all the post-communist countries. I would recommend that anyone who has doubts take the time and go read it. Any one of us can find this information about anyone else because it is accessible. How could you possibly abuse such information? This is what I liked about the previous leadership. By making the information completely open and accessible, they avoided abuse in specific cases. Do you think that The Communist Party of Bohemia and Moravia should be banned? Does this make sense? Banning anything only gives it advertising. I think that the CPBM will disappear on its own. But right now it doesn’t seem that way… We need to consider and respect that fact that they get their eleven percent. If everyone just stopped threatening with the Communists, I would even risk giving them an area of responsibility, so that they can prove they’re unable to do it. You are a Senator for the areas of Cheb and Tachov. Which matters are crucial for your region? There are two projects. The first has to do with excluding land from the Agricultural Land Fund because of the photovoltaic boom. The multifold increase in fees for excluding land from the land

fund caused a slow-down for new investment in all suitable zones. In my region, we submitted a proposal for an amendment to the law and we propose that, in industrial zones, everything should be run according to the original fees. By what amount is the land now more expensive? From sixty to three hundred crowns, which is a problem mainly for foreign investors, because this makes their investment considerably more costly. In supporting the creation of this legal proposal, we mostly worked with the experience from regions. Of course, on one hand, it’s gaining support from the public, while on the other, there’s criticism on the part of various ecological initiatives. They see it as another way to unnecessarily lose land again. However, I’m sure that if this is practiced reasonably, then in my view it won’t be a useless destruction of the landscape. It will definitely not have the form of these large industrial zones along highways. The other project is also controversial, but very beneficial to the region I represent. What is it? It’s a question of expropriation, which sounds somewhat pejorative. When we discussed the two laws in the fall, then the government pushed for promoting expropriation in one law and immediately disapproved it in the next. That’s completely unsystematic. This is primarily a subject for the region of Karlovy Vary. There are thousands of people there depending on mining limits, as well as the methods of access to mineral resources. In this case, of course, I support a reasonable form of expropriation to be in the law. But the impact on landscape cannot benefit only one individual or company, but the entire region and basically the whole of society. Pavlína Holancová český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 31

sport event

Polo players

IN COOPERATION WITH LEADERS MAGAZINE

Third year the BMW brand was the general partner of the International Polo Tournament. The tournament was played during typical British weather conditions at Prague’s horse racing track in Chuchle. BMW presented its latest BMW cars for delighted guests, as well as the lifestyle collection for the kids. BMW fielded its own Polo team in the tournament. The opening ceremony was moderated by Jana Štefánková and guests were welcomed by polo organizer Martina Lewis. Dr. Josef Reiter, the Managing Director of BMW Group Czech Republic, made a welcoming speech as well. Dr. Reiter handed out Awards to the teams and their polo players at the conclusion of this day of sport. The BMW team placed second, just behind the Eden Island Seychelles team. Third place was awarded to the Hublot team and fourth to the Aqua Angels team. In spite of weather conditions, this attractive and original game was attended with great interest by many VIP and special guests. Among them was Vojta Kotek, BMW Ambassador.

BMW presentation

Mrs. Blažková, Hublot and Mr. Blažek

From left: Jana Štefánková, Moderator, Dr. Josef Reiter, Managing Director, BMW Group CR, and Marek Svačina, Sports Moderator, Czech TV

Veronika Jakubcová, Corporate Communication Manager, BMW Group CR and Petr Závodský, Aqua Angels

sport event

From left: Vojta Kotek, Actor and BMW Ambassador, Mrs.Birgit Reiter, and Dr. Josef Reiter, Managing Director, BMW Group CR

Milan Koza, Sales Manager, BMW Group CR

From left: Mrs. Kateřina Zeka, BMW team player, Petr Minařík, Marketing Manager, BMW Group CR, and Mrs. Martina Lewis, BMW team player

BMW polo team with Dr. Josef Reiter, Managing Director, BMW Group CR

From left: Markéta Herianová, Mladá Fronta, Veronika Jakubcová, BMW Group CR, Markéta Vojtová, Lactalis, Tereza Balousová, Regional Office, Central Bohemia Region, and Karolína Vojtová, NOBIS

From left: Dr. Nikolaus Seiwald, Commercial Counselor, Austrian Embassy and Dr. Josef Reiter, Managing Director, BMW Group CR

Mr. Roberto Di Cursi and Andrea Černáková, BMW Group CR

33 From left: Nuria Orctová, Swiss Life Select, Vojtěch Kotek, Actor and BMW Ambassador, and Alice Krejzlová, Swiss Life Select

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Guests have enjoyed the event

networking/discussion event IN COOPERATION WITH LEADERS MAGAZINE

From left: Michal Feix, Executive Director, Seznam.cz and Karel Feix, Managing Director, Kapsch

WITH MR. ZBYNĚK STANJURA, MINISTER OF TRANSPORT OF THE CZECH REPUBLIC On April 9 Comenius Society presented a discussion dinner with Mr. Zbyněk Stanjura, who was appointed Minister of Transport of the Czech Republic in December 2012. Throughout the evening Minister Stanjura has demonstrated his down-to-earth practical and yet rigid attitude in facing the challenges of the Ministry. Besides readily responding to specific comments and questions of the participants Minister Stanjura outlined the plans of the Ministry until 2020 and indicated that a vigorous improvement of the preparation period of the Ministry’s construction projects is among his greatest priorities. Minister Stanjura also expressed his support of smaller construction projects, which allow for simplification of administrative procedures. The rest of the diverse discussion ranged from strategy efficiency, project financing, EU funding and improvement of the overall communication and cooperation among Czech ministries.

From left: Pavel Pilát, Director General, Metrostav, Michal Lukeš, Director General, National Museum, and Tomáš Novák, DACH Sales Director, AMI Praha

From left: Jan Klas, Director General, Air Navigation Services, Tereza Fajtlová, Marketing Officer, Czech Air Navigation Institute, Josef Rada, Director General, Civil Aviation Authority CR, and Luboš Hlinovský, Director of Strategy and Management Support, Air Navigation Services

34 From left: Zbyněk Stanjura, Minister of Transport and Karel Muzikář, President, Comenius

From left: Jiří Vítek, Director, Telematic Services, Deloitte Czech Republic and Zbyněk Stanjura, Minister of Transport

networking/discussion event

From left: Július Kudla, CEO, Euler Hermes Europe SA, H.E. Peter Brňo, Ambassador of Slovakia, and Martin Žáček, CSc., Director General, Uniqa CR From left: Pavel Pilát, Director General, Metrostav and Karel Muzikář, Managing Partner, Weil, Gotshal & Manges

From left: Benke Aikell, your Publisher, Fawad Nadri, President, Czech-Afghan Chamber of Commerce, Zbyněk Stanjura, Minister of Transport, and Karel Muzikář, President, Comenius

From left: Vlastislav Bříza, Director General, GAMA Group, Jiří Uklein, Secretary General of the Senate, Michal Hátle, Director General, T-Systems, and Albín Sybera, Director General, Sybera Enterprises

Round Table at Hotel Pyramida

From left: Karel Feix, Managing Director, Kapsch, Jan Klas, Director General, Air Navigation Services, Zbyněk Stanjura, Minister of Transport, Karel Muzikář, President, Comenius, and Martina Mannová, Strategy Director, ČD

networking/discussion event

From left: Karel Muzikář, President, Comenius, Zbyněk Stanjura, Minister of Transport, and Jan Klas, Director General, Air Navigation Services

From left: Blanka Kalcsová, Director General, MEDIS Holding, Stanislav Beneš, General Manager East Europe, INFRAM, and Marek Svoboda, Director General, PRAGOPROJEKT

Jiří Kolář, Director General, Railway Infrastructure Administration

From left: Michal Hátle, Director General and Chairman of the Board of Directors, T-Systems CR and Bohuslav Cempírek, Director General, ICZ

36 From right: Jan Komárek, Sales and Technical Director, OHL ŽS, Martina Mannová, Strategy Director, ČD, and Karel Muzikář, President, Comenius

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Michal Feix, Executive Director, Seznam.cz addressing some questions

networking/discussion event

From right: Leonid Petrovich Reshetnikov, Director and Chairman of the Board, Russian Institute of Strategic Studies and Vladimír Plašil, Chairman of the Board, Alta, a.s.

IN COOPERATION WITH LEADERS MAGAZINE

From left: Ding Li, Economic and Commercial Dept., Embassy of the People’s Republic of China and Serge Frolov, Analyst, Rusatom Overseas

From left: Hannu Kasi, Country Manager, ABB, H.E. Yaakov Levy, Ambassador of Israel to the CR, and Benke Aikell, your Publisher

From left: Cheng Yongru, Counsellor (Economic & Commercial), Embassy of the People‘s Republic of China and Jan Mládek, Chairman, Fontes Rerum and Shadow Minister of Finance, ČSSD

From left: Yerzhan Jukenov, Minister Counsellor, Embassy of the Republic of Kazakhstan and PhD Viktor Matsko, Counsellor of Ukraine

networking/discussion event

From left: Hannu Kasi, Country Manager, ABB, Serge Frolov, Analyst, Rusatom Overseas, Michal Čupa, Director General, České Radiokomunikace, Cheng Yongru, Counsellor (Economic & Commercial), Embassy of the People’s Republic of China, H.E. Evelyn Austria-Garcia, Ambassador of the Philippines, and Benke Aikell, your Publisher

Petr Kolísko, Member of the Board, PSG - International

From left: Zdeněk Vališ, M.A., Director, Foreign Trade Section, Ministry of Industry and Trade and Fawad Nadri, President, Czech-Afghan Chamber of Commerce

From left: Leonid Petrovich Reshetnikov, Director and Chairman of the Board, Russian Institute of Strategic Studies and H.E. Christian Hoppe, Ambassador of Denmark

From left: Lubomír Fabík, Vice Chairman of the Board, ALTA INVEST, Kolísko, Member of the Board, PSG – International, and Tomáš Jirsa, Senator, Senate, Parliament of the CR

On May 16 Comenius Society presented an unusual and a very intriguing discussion dinner with Mr. Leonid Reshetnikov, who was appointed Director of the Russian Institute for Strategic Studies (RISS) by the Presidential Decree in April 2009. RISS is a state research organization providing highlevel Russian Federation bodies with information and support on matters related to national security and Russia’s strategic interests and thus the Czech business and diplomatic community had a rare opportunity to openly ask about and to discuss Russian perspectives and plans directly with one of the most acknowledged Russian experts. Throughout the evening Mr. Reshetnikov described not only the activities of RISS, but also the general attitudes of the Russian Federation and its visions. Among several key subjects Mr. Reshetnikov discussed the Russian hesitant standpoint towards the EU, the current internal functioning, the economic future and plans of an effective wealth distribution of the Russian Federation and he also catalyzed a discussion about global security, terrorism and present military conflict in Syria. The Czech participants of the discussion dinner were encouraged by Mr. Reshetnikov’s conclusion which revealed his positive view about the future of Czech-Russian business partnerships.

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Round table at Hotel Ambassador

networking/discussion event

From left: Petr Kolísko, Member of the Board, PSG – International, Lubomír Fabík, Vice Chairman of the Board, ALTA INVEST, Leonid Petrovich Reshetnikov, Director and Chairman of the Board, Russian Institute of Strategic Studies, Karel Muzikář, President, Comenius, and Tomáš Jirsa, Senator, Senate, Parliament of the CR

From left: Tomáš Novák, DACH Sales Director, AMI Praha and Libor Holub, Chairman of the Board, SBERBANK CZ

H.E. Cihad Erginay, Ambassador of Turkey with a question

From left: Roald Piskoppel, General Manager, Rusko-česká smíšená obchodní komora and Oleg Evgenevich Lushnikov, Senior Resercher, Russian Institute of Strategic Studies

From left: H.E. George Monteiro Prata, Ambassador of Brazil and H.E. Christian Hoppe, Ambassador of Denmark

From left: Miroslav Pavel, General Director and Chairman of the Board, Bankovní institut vysoká škola, Jan Mládek, Chairman, Fontes Rerum, Shadow Minister of Finance, ČSSD, and Karel Muzikář, President, Comenius

networking/discussion event IN COOPERATION WITH LEADERS MAGAZINE

From left: Zbyněk Pardubský, Sales Director, Huawei Technologies (Czech), Michal Feix, Executive Director, Seznam.cz, Karel Muzikář, President, Comenius, and Jiří Kysela, General Director, DELL Computer

Round Table of Comenius

DSTISCUSSION DINNER WITH MR. LADISLAV MINČIČ, 1 DEPUTY MINISTER OF FINANCE OF THE CZECH REPUBLIC

On May 23 Comenius Society presented a discussion dinner with Mr. Ladislav Minčič, 1st Deputy Minister of Finance who substituted for Minister Miroslav Kalousek. The evening has opened with an intense discussion about the economic recession of the Czech Republic and Mr. Minčič has indicated that the government can never directly affect economy; it can only provide indirect support to economic subjects. Mr. Minčič continued with outlining the intentions of the Ministry to better distribute money to different sectors and also to install a stricter control over money for social security benefits. Similarly as a number of Czech ministers have mentioned during past Round Tables of Comenius, even the Deputy Minister of Finance has acknowledged effective investment into transportation infrastructure to be the key mission of the Czech government for the future. The evening has concluded with several specific questions from participants some of which also touched upon the competitiveness of the Czech banking sector.

From left: Petr Choulík, Head of Subregion Central CZ, Linde Gas, Otakar Hora, Deputy Managing Partner, COO, KPMG, Daniel Merhaut, Services Sales Executive, Dell Computer, and Tomáš Novák, DACH Sales Director, AMI Praha

From left: Jan Oberman, Adviser to the General Manager, Canadian Medical Care and Jan Kohout, Advisor to the President and Chairman of the Association of Regions of the CR for Foreign and Security Policy

40 From left: Jan Wiesner, President, Confederation of Employers’ and Entrepreneurs’ Associations of the CR, Radek Dohnal, General Manager, Top Hotels Group, and Stanislav Novák, Vice President, Comenius

From left: Karel Muzikář, President, Comenius, Karolína Horáková, Partner, Weil, Gotshal & Manges, and Karel Muzikář, Managing Partner, Weil, Gotshal & Manges

Zbyněk Fibich, Head of Legal and Procurement Department, Air Navigation Services and Tereza Fajtlová, Marketing Officer, Air Navigation Services

From left: Jaromír Šlápota, Chairman, Czech Slovak Foreign Institute and Ivan Souček, Member of the Board, IMG

From left: Jiří Maceška, Chairman of the Supervisory Board, Česká pošta, Radka Bučilová, Director, The State Environmental Fund, Adéla Syberová, Project Manager, Comenius, and Vlastimil Halla, Director, KPMG Česká republika

From left: Michal Vodák, Marketing Director, Seznam.cz, Michael Hejkal, Key Account Manager, Seznam.cz, Mária Čuhelová, Attorney, Kamil Veselý, Department Manager for Key Customers, Seznam.cz, and Michal Feix, Executive Director, Seznam.cz

From left: H.E. Peter Brňo, Ambassador of Slovakia, Zdeněk Pelc, General Director, GZ Digital Media, Roman Cabálek, General Director, Microsoft, and Jan Wiesner, President, Confederation of Employers’ and Entrepreneurs’ Associations of the CR

From left: Filip Kühnel, General Director, Orea Hotels, Michal Procházka, Director, Avanti, Zdeněk Pelc, General Director, GZ Digital Media, Roman Cabálek, General Director, Microsoft, and Jan Zadák, President Enterprise Services EMEA, Hewlett - Packard

Round table at the Congress Hall of the Top Hotel

From left: Albín Sybera,Secretary to the Director, The State Environmental Fund, Marie Rubišarová Medová, Executive Director, Authoria, and Libor Joukl, Deputy Governor, Kraj Vysočina

networking/discussion event

From left: Ivan Souček, Member of the Board, IMG, Petr Hotovec, Director, Zenova Services, Michal Donath, General Director, Donath Business & Media, Kateřina Gazárková, General Director, Hotel Albion, Top Hotels Group, and Tomáš Drahoňovský, Senior Account Manager PUB, DELL Computer

From left: Milan Kubek, President of the Czech Medical Chamber with a question and Pavel Smutný, Partner, Law Office Císař, Češka, Smutný

Rostislav Dvořák, Chairman, Confederation of Employers’ and Entrepreneurs’ Associations of the CR

H.E. Peter Brňo, Ambassador of Slovakia with a question

42 From right: Karel Muzikář, President, Comenius, Ladislav Minčič, Deputy Minister, Ministry of Finance of the CR, Jiřina Nepalová, Director, Renomia, Michal Feix, Executive Director, Seznam.cz, and Otakar Hora, Deputy Managing Partner, COO, KPMG

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analysis

Where Can Our Brain Lead Us? eville. An example of Averageville might be a collection of a hundred men. We look for their average weight and height. Of course, among them could be a beanpole and someone of dwarf size, just as well as a fat man and a scrag. However, if we count the average weight and height, the resulting deﬂections won’t be dramatic.

We often think like turkeys and don’t realize that the good times may be behind us and Let’s also take an average that they’re not forever. Prognosticators among us of their wealth. Let’s were handed an amazing imagine that Bill Gates tool – the spreadsheet or Warren Buffet (for processor. How easy to those not following the extrapolate now. It’s just statistics, they’re among The only thing we have as easy as for the turkeys! the richest people on to think with, at least System 2 fails in prognostics and statistics, I hope, is our brain. It’s the planet) got somehow based on a too-small sample or one-sided presumptions. One of the charity efforts Bill Gates “stuck” in this sample! unique in each of us, but failed at was the support of small schools. The statisticians maintained their students achieved occasionally tends to lead Thanks to either single better results than students from big schools. That was true in some cases, but unfortunately, person, the average will us astray. there were an equal percentage of small schools that achieved exactly opposite results. I will proturn into something This essay is inspired by Nassim Nicholas vide further examples of the one-sided interpretathat makes no sense. tion of statistics later. Taleb’s book The Black Swan, which was recently translated to Czech. Taleb is not only an American System 1 would deduce academic, but also a former investment advisor. For now, I owe you a definition of the black swan. That previous career taught him a lot. Among othIt’s a phenomenon that has three basic paramean essentially nonsensical ters. It cannot be predicted. It has catastrophic or er things, it taught him to not believe expert studies, various scientific research and predictions. excellent impacts. And finally, there’s conclusion from this kind absolutely always someone who says afterwards “I told you so.” Unfortunately, they never again repeat such Daniel Kahneman, a psychologist and Nobel of an average. excellent predictions. Examples might be the Prize laureate in economics, defined two Systems within our inner self. He calls them System 1 – which works quickly and more or less intuitively and System 2 – which is slower, more analytical and examines data. Unfortunately, in any given situation, they can both produce incorrect conclusions. Let’s begin with the definition of Kahneman’s two systems according to Nassim Taleb. Let’s call the first an Averageville and the other Extrem-

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9-11 attacks or the internet. Let’s demonstrate the reaction of System 1 in one more of Taleb’s examples. We’re in the United States. At a farm, turkeys are enjoying their life, regular food, regular increases in weight, decent treatment. Thanksgiving Day is approaching in the calendar (yes, the one holiday during which tables bend under the weight of turkeys). Those who didn’t know were the turkeys. Their System 1 failed to warn them. The butcher knew.

Excerpt from Ivan Pilný’s new book Máte na víc (You Can Do More) published recently by Albatros (in Czech). By Ivan Pilný ■ President of Tuesday Business Network Former Chairman of Czech Telecom český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 43

interview

CALL A DOCTOR An interview with Petr Nosek, Founder, Owner and Executive Director of CALL ASSISTANCE 24

Petr Nosek studies classical guitar under Štěpán Rak and actively plays and organizes both chamber music and concerts with his own ensemble, KANTIKA. At the beginning of 1990’s, he worked for CS ASSIST, a French filial company of the Delta Group operating in the Czech and Slovak markets that merged into International SOS in 1998. He represented the company for the next six years, first as General Director for the Czech Republic and Slovakia, then gradually all of Central Europe. In 2002 he left to start a private clinic at Karlovo náměstí in Prague, which prospers today. In 2006 he sold his share of the clinic and founded Call Assistance 24, a company that became a part of the prestigious International Assistance Group association in 2011.

At time when reform of Czech health care, without exaggeration, sharpened the chaos within Czech health care, it’s obvious that a new service would appear in the Czech market, helping a number of people find a way out of that vicious circle. Basically, all of us face the same problems – the poor accessibility and quality of state health care. Petr Nosek, founder, owner and CEO of CALL ASSISTANCE 24, already active in the Czech and international market for seven years, says “Our common experience is that patients are left to their own destiny. This is also one of the reasons I’ve been active in this business for many years.” Nosek says he currently offers a very unusual service for Czech conditions – you can call your doctor 24 hours a day… What led you to establish Call Assistance 24? The urge came in 2006. I wanted to go back to the field of assistance-services, where I had worked for nearly eleven years. I resolved to build an entirely new company within five years. Today, Call Assistance 24 has an excellent reputation. For example, we were invited by International Assistance Group, the largest world-wide assistance association to become members. This brings enormous prestige, strengthens the brand and, last but not least, made us part of the largest international network, which opened our capacity to the rest of the world. What’s the major strength of the company? We have something I’m really proud of, managing to build excellent teams of coordinators in the call center, who provide assistance ser-

Leaders Magazine III/2013

interview vices 24/7, as well as doctors for consulting and house-calls. The doctors are very erudite overall, with a good knowledge of languages, oriented toward clients as they work, as well as being available 24/7. I also dare to say that our management is excellent and professional, understanding and doing their job efficiently. The second aspect is perfected work processes, algorithms and actual applications for case management. The third aspect is excellent networking both local and international partners and suppliers. What exactly do you provide for your clients in your Call a Doctor project? Practically everything they need at a particular moment. Telephone consulting, house-calls or visits to a company and assisting in arranging complete professional follow-up medical care, when needed. This enables our clients to be received in the most suitable health-care facilities, with prior professional communication and shared necessary documentation. We will also soon provide a special product we currently are developing, an annual ‘Call a Doctor’ card. The card has three basic features. Can you specify? The first feature is non-stop availability. Second is coverage throughout the entire Czech Republic and third, assistance in ensuring needed followup care. When it comes to house-calls, these actually are provided in Prague and its surroundings up to 30 km. We intend to change this in the near future. That’s the professional medical part. The second part is discounts within the medical field, not merely tee-shirts or cosmetics, and the third part is medical insurance – the products of health-care insurance.

ensure professional services in cases of chronic illness that are not acute at the moment, but would be well to solve. On request we also provide second opinions. This is within your competency? Yes, we’re able to arrange very expert and excellent examinations in all disciplines. Additionally, our client never arrives at any health-care facility seemingly ‘off the street.’ We try to prearrange the date and time of examination, so they needn’t wait and, as already mentioned, our client arrives with a medical report and relevant documentation available to the health-care facility. This is an absolutely critical standard of our work. It means consultation prior to a house-call, the house-call itself, prescription of medications if needed and assistance in arranging professional follow-up care. Additionally, if the client wants the luxury of personal assistance in the health-care facility, they will have it, as we are able to arrange this. Of course, this costs money, but then the service is much more personal and of far better quality overall. Given your long-term experience in the field, can you say whether access to spa treatments is decreasing? In my view, access hasn’t changed, but the financial cost to patients has increased significantly. We offer some very interesting discounts from this perspective. These discounts are, of course, very individual and connected with the quality of the spas. Again, which level of quality they select depends on our clients.

What’s the basis of the 24 hour service, then? Does it replace emergency services? Certainly not! It doesn’t replace emergency services and never will. This is stated in all our materials. If our client calls us in a matter even resembling a life-threatening condition, or should there be a danger in case of delay, we immediately call the emergency service. On the other hand, our house-calls don’t end with the doctor treating a client, giving a medical report and leaving. We in addition arrange a complete follow-up care, as required. Of course, this service is not covered by health care insurance.

So this is the basis of the card... Yes. All the three pillars together are able to provide as we see it a comprehensive, virtual health-care facility that’s far more effective than a bricks-and-mortar one. We have specialists for both adults and children and cover the complete scope of medical specializations. This way, when the service is led directly and anytime via a doctor on the phone who is a part of the system I described, it is from the beginning to the end professional, high-quality and personal care with the added beneﬁt of accessibility of the service anytime and anywhere. The card and the service can be custom designed for any client – an individual, a corporation or even various groups, national or language groups. It’s quite a sexy product :)

What is the range of the follow up care? We have tremendous possibilities here. We explain the alternatives to the client and offer the service of a suitable private or state health-care facility. Then we contact the facility and proceed as I just explained. Of course, if necessary, we also arrange transportation by taxi or ground ambulance. We also offer multilingual assistance for transport and within the health-care facility, although only in Prague so far. But we’re extending this service across the Czech Republic. We further

When will the card become available and in what price range? We’d like to introduce the Call a Doctor card this fall and the price will be up to 10,000 CZK, more likely considerably less. A signiﬁcant element is house-calls by doctors, but even this area can be solved elegantly and in a client-friendly and cost effective way. Our clients will be able to choose between an individual card and a family card. At the same time we’re beginning to provide so-called tele-assistance.

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What is this service for? It’s used to get acute help wherever you happen to be. If you have the device on you, you press a button and a map of your specific location appears in our call center. A second monitor shows your client card and complete file. I think in the future, this service will be very useful not only to seniors, who currently use it most. This way, there could be a certain type of monitoring assigned to the Call a Doctor card. That’s certainly a standard for the future, but we have begun to offer it today. And finally, there is one more service I’d like to highlight. Also connected to the Card? Yes, it could be. Primarily we’re planning to address our product to various ethnic communities and foreigners and groups of foreigners living and working in the Czech Republic. Currently we got an agent for PVZP, a very renowned insurance company, in the matter of insuring foreigners. PVZP has now established a product that is equivalent to public health insurance. For very affordable prices and without any exceptions, it covers insurance in a scope equal to that of a Czech citizen. And we want to propose this product. Furthermore, within the Exclusive product, which can be customized, we are able to add such assistance services as on-the-phone doctor, house-calls, etc. to the actual insurance coverage for these clients. Mr. Nosek, thank you for this very interesting interview. We all wish you good luck with your great product that with no doubts will be very successful. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 45

networking/charity Guest of Honor: Lenka Kohoutová, Member of the Parliament of the Czech Republic Topic: Social policy in the Czech Republic

From left: JUDr. Jan Kotous, Pedagogue, Faculty of Law, UK, Fra. Karel Paar, Grand Prior of Maltese Knights, Lenka Kohoutová, Member of the Parliament of the Czech Republic, Ing. Anton Gerák, CSc., Commercial Director, President, LC Praha Bohemia Ambassador, Secretary LCI D122 Czech Republic and Slovak Republic, and Ing. Jiří Málek, former President, LC Praha Bohemia Ambassador

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From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic, Ing. Milan Maxa, Director and Owner, TECHEM CZ, s.r.o. Praha, Ing. Anton Gerák, CSc., Commercial Director, President, LC Praha Bohemia Ambassador, Secretary, LCI D122 Czech Republic and Slovak Republic, and JUDr. Jan Kotous, Pedagogue, Faculty of Law, UK

46 From left: Ing. Jiří Málek, former President, LC Praha Bohemia Ambassador and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic

From left: Oldřich Hořák, Owner, Hotel Bílá Růže in Poděbrady and Petr Laštovka, Entrepreneur

From left: Ing. Anton Gerák, CSc., Commercial Director, President, LC Praha Bohemia Ambassador, Secretary, LCI D122 Czech Republic and Slovak Republic, Benke Aikell, your Publisher, Ing. František Novotný, Director, TERRAMET s.r.o., and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic

networking/charity

From left: JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic, Ing. Milan Maxa, Director and Owner, TECHEM CZ, s.r.o. Praha, and Ing. Jiří Opichal, Executive Head, Allimex Trading s.r.o. and former President, LC Praha Bohemia Ambassador

From left: JUDr. Jaroslav Novotný, Lawyer, Membership Chairperson of LC Praha Bohemia Ambassador and Miroslav Hříbal, Entrepreneur

Lenka Kohoutová, Member of the Parliament of the Czech Republic and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic

From left: Ing. Rudolf Kočí, Entrepreneur, Oldřich Hořák, Owner, Hotel Bílá Růže in Poděbrady, Petr Laštovka, Entrepreneur, and Ing. Antonín Mika, Regional Director for Foreign Trade

From left: Ing. Aleš Haur, Entrepreneur and Ing. Petr Kučera, CSc., Authorized Expert for the Construction Field

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From left: Ing. Anton Gerák, CSc., Commercial Director, President, LC Praha Bohemia Ambassador, Secretary, LCI D122 Czech Republic and Slovak Republic, Lenka Kohoutová, Member of the Parliament of the Czech Republic, and JUDr. PhDr. Oldřich Choděra, Lawyer, Charterpresident, LC Praha Bohemia Ambassador and former Governor, LCI D122 Czech Republic and Slovak Republic

From left: Jaromír Hájek, CEO, LeasePlan, Míša Maurerová, Moderator, and Vladan Jesenský, Commercial and Marketing Director, LeasePlan

golf tournament

From left: Ondřej Záviský, CFO, OTE, Martin Hron, Application Support, LeasePlan, Pavel Baštář, Executive Director, Invelt Praha, and Jindřich Ťukal, Executive Director, EVEREST servis

From left: Frank Versaevel, CEO, Volvo Cars Auto Czech, Jiří Pavlíček, CEO, Aspironix, Prof. Mudr. Michal Zeman, and Jaroslav Kocián, Managing Director, Gefos From left: H.E. Victor Julián Hernandéz Leon, Ambassador of Venezuela, Michal Hu, Director, Erpet Golf Centrum, Jaromír Hájek, CEO, LeasePlan, and Mr. Tomáš Termer

From left: Karel Kovář, Executive Director, TECHNISERV, Petr Fiala, CFO, Your Systém, Mrs. Dita Žlábková, and Martin Doležel, Senior Director, Pfizer

From Left: Pavel Zákravský, Executive Director, VGP FM Services, Mr. Karel Stolejda, Martin Veselý, Director, Auto Průhonice, Rastislav Vašica, CFO, Bohemia Sekt, and Vojtěch Černý, Account Manager, LeasePlan

Jaroslav Žlábek, CEO, Schneider Electric CZ, Luděk Menčík, Country Manager, MARSH, Josef Novák, CEO, Veba Broumov, and Jan Lichner, Corporate Sales Director, Porsche Česká republika

From left: Jan Novotný, CEO, Storex, Jan Pelán, Commercial Director, Pragis, and Tomáš Rzounek, Managing Director, Lowman Motor

From left: Antonín Stokláska, CEO, Pragis, Barbora Soukupová, Member of the Board, SHERLOG eVito, and Miroslav Šimánek, CFO, Regie Radio Music

From left: Dalibor Kobrle, S group holding, Michal Kulhánek, HR Director, Syner, Martin Borovička, CEO, Syner, and Vítězslav Štumf, Chairman of the Supervisory Board, S group holding

sustainable development

Weird Weather IS THIS CLIMATE CHANGE? As a former communications director for Greenpeace International, I know all-too-well how difficult it is to convey realistic environmental warnings without being alarmist. With doomsday scenarios tending to turn people off, how can environmentalists ensure their predictions are taken seriously? Climate change presents just about the toughest messaging challenge of all, because it’ll be far too late if we waited until the predictions were proven to be true. And it would be wrong to point to any single extreme weather event as evidence with any credibility. Hence a long-standing reluctance to make any direct connections between weird weather and climate change. In spite of growing evidence of significant changes in weather patterns, sceptics continue to accuse the environmental community of making exaggerated and false claims. But increased instances of extreme weather are prompting more experts to cite natural disasters as true indicators that something serious is happening to our climate. Recent torrential rains in Central Europe, which caused the Czech government to announce a state of emergency, is again giving rise to the question as to whether we are not actually experiencing real, tangible consequences of global warming. With the death of seven Czechs, the evacuation of more than 20,000 from the their homes and the near-record high water levels of the Vltava river threatening to flood the historic centre of Prague, should be we worried about the future? Or do we simply believe that this was just another isolated event of the kind that happens from time to time? Jonathan Wootliff A former director of Greenpeace International, Jonathan Wootliff lives in Prague and works throughout the world as a sustainability consultant to business. He has advised many large corporations including BP, Colgate-Palmolive, McDonald’s, Procter & Gamble and Whirlpool. He has particular expertise in climate change, energy policy, forestry, and supply chains, and provides counsel to companies on the development of sustainability strategies that benefit the environment, society and business. Among his many activities, he is Chair of the Board of Experts of the Czech Business Council for Sustainable Development. He can be contacted at jonathan@wootliff.com.

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According to the European Environment Agency such occurrences are likely to increase in Europe over the coming years. And its scientists say that this is a consequence of climate change. Recent assessments carried out by the organisation reveal that extreme weather events are mainly due to land use change, increases in population and economic wealth and human activities in hazard-prone areas. Executive Director, Hans Bruyninckx predicts that rising temperatures in Europe will intensify the hydrological cycle, leading to more frequent and intense floods in many regions. “Considering flood risk in Europe, we can see climate change will be an increasingly important factor” he said. In order to combat an increase in flooding, the EEA says Europe must adapt to climate change that is happening now, and anticipate future change. Cities around Europe may have to erect flood barriers and take other expensive mitigating measures, as climate change takes hold and leads to the danger of much more destructive storms, floods, heavy rainfall and higher sea levels, Europe’s environmental watchdog has warned. The effects of climate change will be so farreaching across the continent that vineyards may have to plant new grape varieties, farmers may have to cultivate new crops and water suppliers look to technology such as desalination in order to cope with the probable effects of more extreme weather. Buildings and infrastructure such as transport, energy and communication networks will also have to be changed. The warnings are included in a report from the European Environment Agency, published before the recent floods. The research reveals that half of the organisation’s member countries still lack plans to adapt to the effects of global warming. The EEA has found that the effects of climate change are already being felt across Europe, and more is in store. Even if current efforts to cut global greenhouse gas emissions are successful, there are likely to be further impacts from a changing climate, including more frequent extreme weather events such as fiercer storms, heatwaves and periods of heavy rainfall. Average temperatures across Europe have risen, and there is now less rainfall in southern Europe, where much of Europe’s agriculture is focused, and more rainfall in northern Europe, where it gives rise to floods. The report classes the different measures to adapt to climate change as “grey”, meaning technological and engineering projects such as river

Former Greenpeace International director, Jonathan Wootliff, is now a sustainability consultant living in Prague. Photo: Archive of Author

or sea flooding barriers; “green” projects that are based on adapting natural ecosystems, such as changes to farming methods and crops; and “soft” measures which are categorised as policy changes, and measures such as early warning systems for forest fires. All will be needed to ensure Europe can adapt to the changes under way, and although the projects may incur upfront costs, they should result in savings over the longer term. Floods, storms and other hydro-meteorological events account for around two thirds of the damage costs of natural disasters, and these costs are now increasing significantly. The European Union is addressing flood risk through the so-called Floods Directive. As a member state, the Czech Republic is required to draw up flood risk maps by 2013 and establish specific management plans focused on prevention, protection and preparedness by 2015. In April 2013 the European Commission adopted a communique on an ‘EU strategy on adaptation to climate change’ which aims at contributing to a more climate resilient Europe. The strategy aims to enhance the preparedness and capacity to respond to the impacts of climate change at local, regional, national and EU levels. Czech business is also going to have to adapt to the impacts of climate change by developing robust sustainability strategies. This will certainly make the work of the Czech Business Council for Sustainable Development – now celebrating its first anniversary – ever more important. By Jonathan Wootliff ■ Leaders Magazine III/2013 49

gala evening

The 13th year of this professional contest culminated with a gala evening held in the Congress Centre of the Czech National Bank in Prague on May 22, 2013, under the auspices of the Czech National Bank governor Miroslav Singer.

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INSURER OF THE YEAR 2012 This oldest contest on the market is jointly organized by the Association of Czech Insurance Brokers (AČPM), the Czech Insurance Association (ČAP) and the specialized information server oPojištění.cz. The insurance brokers – as experts who work with insurers on a daily basis – assessed the insurance companies’ performance in five categories: insurance of industry, car insurance, civil insurance, specialized insurance and life insurance.

During the gala evening, ACPM also announced the winner of its own contest among Prague art university (VŠUP) students to come up with an original design for Insurer of the Year 2012 glass prizes. The award together with a CZK 10.000 cheque, was given to Michaela Doležalová (in the middle), 1st grade student, for her crystal capsules, by Ing. Zdeňka Indruchová, Executive Director, ACPM and Ing. Tomáš Síkora, MBA, Executive Director, Czech Insurance Association.

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 prof. Ing. Jaroslav Daňhel, CSc., a reputed long-time member of the Department of Banking and Insurance, University of Economics, Prague.

Within the framework of the contest, the insurers also judged the overall performance of insurance brokers which resulted in nominating the TOP 5 Insurance Brokers for 2012. The awards were handed over by the founding father of the broker profession in the CR JUDr. František Stach, also 2009 Personality of the Insurance Market (pictured far left) together with Ing. Tomáš Síkora, MBA, Executive Director, Czech Insurance Association (pictured far right) and were received by ACPM members as follows (from left): Ing. Michal Truxa, Director, RESPECT, Jiřina Nepalová, Director, RENOMIA, Margit Vavřincová, Business Director, INPOL, Ing. Ivan Špirakus, CEO, INSIA, and Mgr. Marek Vondra, Director, C.E.B.

Over two hundred VIP guests gathered in the historical CNB building to applaud the award-giving ceremony for 2012, opened with a speech by the CNB Vice Governor Prof. Vladimír Tomšík (with Jana Stefanková, master of ceremonies, in the back)

From left: Vladimír Krajíček, CEO, ERV received the award from Petr Kučera, Executive Director, CRIFCCB, and Ivan Špirakus, Board Member, ACPM

Ing. Václav Runštuk, Head of the Car Insurance Section, Kooperativa pojišťovna, receives the 1st place award from Ing. Janeta Haas, Country Manager, Ubimet, with Jiřina Nepalová, President, ACPM, on-looking

Ing. Zdeňka Indruchová, Executive Director, ACPM

Out of the total five assessed categories, Kooperativa pojišťovna won three, Pojišťovna ČS reached for the first place in the life insurance category, while ERV pojišťovna has reconfirmed its previous seven-year’s victories in the specialized insurance category.

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Life insurance category awards were handed over (from left) by Ing. Gustav Vacek, Vice President, ACPM and Ing. Jan Struž, President, Czech Top 100, to the following winners: for Generali Pojišťovna, Ing. Jiří Střelický, Board Member, 5th place, ING životní pojišťovna, Ing. Tomáš Nidetzký, Business Director, 4th place, Allianz pojišťovna Ing. Petr Hrbáček, Department Director, 3rd place, Kooperativa, Mgr. Filip Král, Department Director, 2nd place, and Pojišťovna České spořitelny, Ing Petr Zapletal, CEO – the winner.

event

View of the audience

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This is the motto that governs all activities of the Czech Insurance Brokers’ Association (AČPM) for the nearly twenty years of its existence. In addition to AČPM traditional annual conferences, open to all insurance brokers registered by the Czech National Bank, the Association continues to organize its “members only” specialized seminars. Thus, nearly a hundred of participants gathered on June 4, 2013, in the Brno Kaskáda Congress Centre, to learn more about the impacts of the New Civic Code on the day-by-day services provided by insurance brokers to their – mostly corporate – clients.

AČPM managed to invite one of the best legal experts in the Czech Republic as a lecturer: JUDr. Petr Vojtek, Supreme Court Judge, spoke about damage compensation within the new Civic Code

Jiřina Nepalová, AČPM President, introduced the second lecturer: Mgr. Karel Haas, Lawyer and ČSOB Pojišťovna Supervisory Board Member.

52 AČPM Executive Director Ing. Zdeňka Indruchová during her welcome speech. On-looking Ing. Gustav Vacek, AČPM Vice President

media power

BOOM AND BUST WHY CZECH START-UPS NEED PROFESSIONAL COMMUNICATION

The economic crisis that began in 2008 has emphasized that the true engine of a healthy economy is the vivacious small enterprises created and driven by people who dare to dream. These people go on their own to follow opportunities when fear is the global markets’ common denominator. In the Czech Republic, in line with global and European trends, all eyes have turned to creating and supporting emerging businesses. The word “start-up” has become so overused and abused – pretty much like the word “coaching” – that many reasonable business people, investors, mentors and politicians developed an allergy to it. And this is just the beginning; with a large amount of public funds being prepared to be poured into the start-up segment, more surprises lie ahead of us, be they positive or negative. A refreshing goldmine For professional communicators, the startup segment is a refreshing goldmine. When my friends in the South Moravian Innovation Center (JIC) invited me to speak about media relations to their start-up crowd, I was happy to oblige. More than a business opportunity, being in the startup community was like plunging into a river after a really hot day: a start-up entrepreneur myself, I had finally found other people with dreams and willingness to make sacrifices in order to follow them. So refreshing! As time went by, my experience with start-ups deepened. I started to observe differences among various start-up communities; I also started to become more realistic in distinguishing between a business idea and an already functioning business case. In almost all instances, communicating professionally was a tough nut to crack for the technology-driven start-up entrepreneurs. They Cristina Muntean is a professional communications adviser, media trainer and coach. She has more than 12 years’ experience in the Czech, Romanian and international media. In August 2010 Cristina founded Media Education CEE, a Prague-based premium PR advisory and training agency. Her clients are top managers, diplomats and public officials who aim to make their voice heard in their community. In June 2011 Cristina was elected president of the Czech PR Klub; in January 2012 she was elected chairwoman of the Marketing Committee of the American Chamber of Commerce in Prague. Cristina speaks Romanian, French, English and Czech and can be reached at cm@mediaed.cz.

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know they need to communicate, but have no idea – and often no budget – for communication. What to do under such circumstances? Here are a few observations I gathered from the position of mentor, adviser and PR representative of Czech start-ups. Clarify your expectations I have never been more grateful for having gone from journalism into entrepreneurship in 2010 than when I speak to a start-up entrepreneur. It’s like: “I know what you’re talking about. Been there, done that.” This is why communication advisory usually turns into business management advisory – from PR we end up talking naked figures: how much money do you want to make with this project? Clarifying your expectations may be hard from the beginning, both in terms of economic figures and communication. However, taking time to define and quantify your expectations is the right thing to do: how can you know you have arrived at your goal if you have no idea where you’re heading in the first place? I haven’t mentioned “define your expectations” by accident. Particularly in terms of communication, speaking the same technical language is essential. Branding is not the same thing as marketing, public relations and media relations; content marketing and brand journalism are quite different concepts; social media communication and online advertising will also require different approaches and tools from your company. The most important thing when you consider communication is to clarify the answer to the question: “What do I want?” Then make sure all your team members have the same definition of terms for the way to get there. Only then is it safe to get down to work. Follow the client That’s why I love communication: It’s common sense. Who will bring you money? Your client. How does your client communicate when he’s considering, searching for and using your product? What channels are your customers using to get informed, share experience and recommend products and services similar to what you have to offer? These are the channels where you must focus your resources. For a start-up, the question of strategic resource management and getting more with less is crucial. It’s the same in communication: follow your client, understand his communication behavior and focus your resources on the channels that build awareness, inform, convince and improve user friendliness for customers. That’s it.

Photo: Jakub Stadler

Repeat success and learn from mistakes Entrepreneurship is the fastest growing-up school I have ever attended. Yet, growth comes only when you acknowledge the facts and try to learn from experiences. Doing the same thing over again and expecting different results is the best deﬁnition for madness, as Einstein said. Whatever you do and brings results, do it again. Keep good track of the outcome of your actions and just do whatever works again and again. On the other hand, dare to be honest with yourself. There isn’t one single entrepreneur who hasn’t made tons of mistakes. For some, FAIL reads as First Attempt In Learning. So, don’t be afraid to admit your mistakes and take action to correct them. It’s part of being an entrepreneur, and it’s a part of who we are. We have so much more to achieve in terms of communication for start-ups on the Czech market. As stated above, failure is part of the process – and we will all: investors, advisers and the government have our share of learning in the next few years. Yet, with concentrated efforts from the business community, hope emerges that the kids of today’s start-up entrepreneurs will live in a world where daring to follow one’s dreams will be a more natural approach. For that it deserves all our investments, including pain, failure and loss. By Cristina Muntean ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 53

interview

A talk with Jan HamĂĄÄ?ek, the Deputy Speaker and the Shadow Defence Minister (the Czech Social Democratic Party)

interview Jan Hamáček is a Czech Social Democratic MP. He was first elected to the Parliament in 2006 where he currently serves as the Deputy Speaker of the Parliament. In the previous Parliament (2006–2010) he was the Chairman of the Foreign Affairs Committee. Mr. Hamáček is a prominent voice on foreign and security policy issues both in his party and across the Czech political spectrum. In his current capacity he also serves as the Shadow Defence Minister. Among other things, Mr. Hamáček’s comments on defence and world affairs have appeared extensively in Czech media, as well as in the Harvard International Review, the US Atlantic Council, and Europe’s World. What is your vision for the defence department? Do you have any priorities? At the moment my team and I are busy putting final touches on our party’s defence manifesto which we hope to unveil soon. In this document, we will analyse challenges and problems facing our armed forces and offer solutions. Our broader vision for the Czech Armed forces is based on prioritizing affordability in defence while deepening defence cooperation with our allies in NATO and the EU. After a prolonged period of belt-tightening and sharp drops in defence spending, our armed forces need a return to stability. In the current financial environment it is hard to imagine for the defence budget to increase significantly any time soon. The challenge has become more acute because the ill-conceived austerity policy pursued by our current government has failed to stimulate domestic growth. Therefore, my number one priority as a defence minister would be to introduce a multi-year budget with a guaranteed baseline for defence spending. This would give our Armed Forces what they have been long calling for, the opportunity for effective long-term development and the best value for the money. In case you become the defence minister after next parliamentary election, can we expect the department’s continuity? In this respect, could you comment on the White Book of Defence? My short answer would be yes. I believe that national defence should transcend party lines. We need to build flexible Armed Forces, which are able to respond rapidly to changing threats in the 21st century. For this we need to have a cross-party consensus on the role and future shape of our Armed Forces. That being said, as a defence minister, apart from introducing a multi-year budget, I would strive to rein in defence procurements. We need to look at ways to deliver programmes in a timely and cost efficient manner. We face a multi-billion CZK hole in terms of expensive defence commitments later this decade. The new government will have to carry out a thorough review of our defence ca-

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pabilities and match our ambitions to our real capabilities. Only a long-term plan based on an honest assessment of our available resources can succeed in producing armed forces that meet our requirements and those of our allies. This is what the White Paper on Defence, a useful exercise in and of itself, attempted to do but it painted too rosy a picture of the Armed Forces. At the time of major budget cuts there tends to be reduced spending on national defence. It is logical that in some cases, individual Member States that specialize in those skills can offer them to allies, whether in NATO or the EU. Can you say what you see as a speciality for the Czech Republic? It is now becoming increasingly obvious that for a country like the Czech Republic, the only hope of sustaining relative defence capabilities is through effective collective action. European NATO members are making deep cuts to their defence budgets, but often times in isolation of each other, so we need to put an end to such a self-defeating practice. That is why I am a great believer in NATO’s Smart Defence and its EU equivalent – Pooling and Sharing. In order to make Smart Defence a success story, however, we need to be more flexible; I believe that rather than wasting our energy and limited financial resources on grand schemes, we should instead focus more on regional initiatives and defence collaboration on a case-by-case basis. The Czech Republic is spearheading a number of multinational initiatives, be it in the filed of logistics or the training of helicopter pilots.

In this respect, how would you assess cooperation at the Visegrad-4 level? Defence cooperation in the V4 format is still in its infancy. But there is a lot of untapped potential. In fact, regional defence cooperation has already proved more successful as geographicproximity, similar strategic cultures, and similar understanding of their roles in world affairs make neighbouring countries cooperate more effectively. But let us not be under any illusions that defence cooperation is the panacea for all of our woes. Our militaries are underfunded and understaffed and this has to change so we can fully beneﬁt from defence cooperation. Could you tell us what you do in your free time? Pursuing a path in politics can often be stressful and emotionally draining. But as in any other profession it is important that a politician tries to switch off and unwind every now and then. For me the best way to recharge my mental batteries is to spend some quality time with my family. My wife and I have two young boys and they are a great source of joy and pride. I love spending time with them at our country cottage. Beyond that if I have some me time, and trust me that happens very rarely, I enjoy reading biographies. Sitting on my bedside table is Tony Blair’s “A Journey”, which is a fascinating and inspirational read. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 55

award ceremony

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From left: Dean Brabec, President, CFO Club and Managing Director CEE, Arthur D. Little GmbH, Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska, CFO Club Financial Director of the Year 2012, Martin Novák, Member of the Council of the CFO Club, Member of the Board of Directors, CFO, ČEZ

FROM SKANSKA WAS AWARDED THE PRESTIGIOUS PRIZE FINANCIAL DIRECTOR OF THE YEAR FOR 2012 The eighth year of the prestigious prize Financial Director of the Year was crowned in the Prague’s Grand Hotel Bohemia on April 10. The winner for the year 2012 is Patrik Choleva from Skanska. Thomas Merker from RWE GasNet was awarded the second position as the third one belongs to Libor Němeček from Agrofert Holding. The CFO Club members, the CFO Club Council and the CFO Academy focused on the personal contribution of the nominees to the company’s growth as well as the influence of financial management to the overall management. The prize Talent of the Year was awarded to Ladislav Jelínek from SAZKA sázková kancelář. Osmý ročník udílení této prestižní ceny vyvrcholil slavnostním vyhlášením v pražském Grand Hotelu Bohemia 10. dubna. Druhé místo za Patrikem Cholevou obsadil Thomas Merker ze společnosti RWE GasNet, na třetím místě se umístil Libor Němeček ze společnosti Agrofert Holding. Členové Klubu finančních ředitelů, Rada Klubu a CFO akademie zohlednili především osobní podíl nominovaných na hospodářském výsledku společností i posílení vlivu finančního řízení na celkové řízení společnosti. Talentem roku se stal Ladislav Jelínek, ředitel divize finance společnosti SAZKA sázková kancelář, a.s.

View of the hall

From left: Thomas Merker, Executive, CFO, RWE GasNet, Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska

From left: Mrs. Iva Brabcová, Šimon Mastný, Partner, Credo Consult, and Monika Zahálková, CEO, Czech Institute of Directors

From left: Dean Brabec, President, CFO Club and Managing Director CEE, Arthur D. Little GmbH and Martin Novák, Member of the Council of the CFO Club, Member of the Board of Directors, CFO, ČEZ

Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska, CFO Club Financial Director of the Year 2012 and Pavel Doležal, Director, Zlatá koruna

From left: Irena Prášilová, Senior Manager, Accenture Central Europe B.V. and Iva Zothová, Advocate, PIERSTONE Law Office

Šárka Pavelková, Finance Manager, DIRECT Pojišťovna, and Martin Procházka, Chief Executive Officer, M.B.A. Finance

Annual award Financial Director of the Year 2012

57 Ivana Goossen, Director, EMBA - Europe, University of Pittsburgh and Jiří Horník, Advocate, Kocián Šolc Balaštík Law Office

Aleš Vojíř, Deputy Editor in Chief, Ekonom, Economia and Radim Duchek, Deputy CEO, ČESKÁ INFORMAČNÍ AGENTURA

award ceremony

From left: Pavlína Jirmannová, Manager, Deloitte Advisory, Šárka Pavelková, Finance Manager, DIRECT Pojišťovna, and Roman Fink, General Director, DIRECT Pojišťovna

From left: Roman Fink, General Manager, DIRECT Pojišťovna and Martin Brix, CFO, LeasePlan Česká republika

58 From left: Daniel Buryš, CFO, Kofola and Martin Novák, Member of the Council of the CFO Club, Member of the Board of Directors, CFO, ČEZ

From left: Pavlína Jirmannová, Manager, Deloitte Advisory and Mrs. Iva Brabcová

From left: Ladislav Jelínek, CFO, SAZKA sázková kancelář, awarded Talent of the Year and Dean Brabec, President, CFO Club and Managing Director CEE, Arthur D. Little GmbH

From left: Aleš Barabas, Vice President of the Council of the CFO Club, Member of the Board of Directors, UniCredit Bank Czech Republic and Míra Hejda, Program Director, Director and Moderator Kiss radio and TV Óčko

From left: Thomas Merker, Executive, CFO, RWE GasNet, awarded second position in Financial Director of the Year, and Kamil Ziegler, Member of the Council of the CFO Club, and Member of the Board, SAZKA sázková kancelář

Thomas Merker, Executive, CFO, RWE GasNet, awarded second position in Financial Director of the Year, and Aleš Vojíř, Deputy Editor in Chief, Ekonom, Economia

From left: Dean Brabec, President, CFO Club and Managing Director CEE, Arthur D. Little GmbH, Ladislav Jelínek, CFO, SAZKA sázková kancelář, awarded Talent of the Year , Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska, CFO Club Financial Director of the Year 2012, and Thomas Merker, Executive, CFO, RWE GasNet, awarded second position in Financial Director of the Year

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Patrik Choleva, Member of the Council of the CFO Club, Vice Chairman of the Board and CFO, Skanska, CFO Club Financial Director of the Year 2012

discussion event IN COOPERATION WITH LEADERS MAGAZINE

From left: Petr Brávek, Member of the Council of the CFO Club, Member of the Board, Slovenská sporiteľňa, Jaroslav Hanák, President, Confederation of Industry of the Czech Republic, Soňa Vladařová, Vice Chairwoman of the Board of Directors, CFO, ČKD GROUP, Michal Bakajsa, Vice Chairman of the Board of Directors and Deputy Director General and Chief Credit Officer, Czech Export Bank, Miroslav Zámečník, Head Economic Analyst, Mladá fronta, Martin Wichterle, CEO, Wikov Industry, and Daniel Heler, Member of the Board of Directors and Deputy CEO, Česká spořitelna

Measures for the support of the Czech economy was the topic ot the CFO Club meeting that took place on June 5 at the Aureole Fusion Restaurant & Lounge at the City Tower in Prague. Different approaches to the competitiveness of economy were presented by Jaroslav Hanák, President of the Confederation of Industry of the Czech Republic, Miroslav Zámečník, Chief Economist of Mladá Fronta, Michal Bakajsa, Vice President of the Czech Export Bank, Daniel Heler, Vice President of Česká spořitelna, Soňa Vladařová, CFO of ČKD GROUP and Martin Wichterle, Executive Director of Wikov Industry. Jaroslav Hanák would like to encourage Czechs to be more optimistic as the position of the country is reasonably good within the EU countries. Nevertheless this fact all speakers agreed on necessity to carry out reforms including the preparation of experts in order to be competitive.

Zbyněk Hutar, Editor in Chief, CFO World and Lucie Urválková, Member of the Board of Directors and CFO, UNIQA pojišťovna

Dagmar Zweschperová, Enterprise Marketing Lead, Microsoft and Bohuslav Poduška, Director of Internal Audit, Česká spořitelna

60 From left: David Braun, Plant Manager, ITW PRONOVIA, David Lukáč, Sales Director, LIVE TELECOM, and Martin Procházka, Chief Executive Officer, M.B.A.

From left: Pavel Elis, General Manager, Pražská energetika and Jan Vrátník, Executive Director, ERSTE Corporate Banking/Česká spořitelna

From left: Jan Vinter, Chairman of the Editorial Board,CFO World, Světlana Jahodová, Managing Director, Talichova komorní filharmonie, and Pavel Musílek, Comitia zdravotní

From left: Michal Bakajsa, Vice Chairman of the Board of Directors and Deputy Director General and Chief Credit Officer, Czech Export Bank, and Miroslav Zámečník, Head Economic Analyst, Mladá fronta

From left: Petr Brávek, Member of the Council of the CFO Club, Member of the Board, Slovenská sporiteľňa, and Jaroslav Hanák, President, Confederation of Industry of the Czech Republic

Martin Wichterle, CEO, Wikov Industry, Daniel Heler, Member of the Board of Directors and Deputy

From left: Soňa Vladařová, Vice Chairwoman of the Board of Directors, CFO, ČKD GROUP, Michal Bakajsa, Vice Chairman of the Board of Directors and Deputy Director General and Chief Credit Officer, Czech Export Bank, Miroslav Zámečník, Head Economic Analyst, Mladá fronta, Martin Wichterle, CEO, Wikov Industry, and Dean Brabec, President, CFO Club, Managing Partner CEE, Arthur D. Little

discussion event

Dean Brabec, President, CFO Club, Managing Partner CEE, Arthur D. Little and Petr Budinský, Vice Chamncellor for External Relations and Trade, Vysoká škola finanční a správní

Irena Prášilová, Senior Manager, Accenture Central Europe B.V.

Argentinian tango

From left: Jaroslav Hanák, President, Confederation of Industry of the Czech Republic and Jan Vrátník, Executive Director, ERSTE Corporate Banking/Česká spořitelna

Ivana Goossen, Director, EMBA - Europe, University of Pittsburgh and Luděk Čermák, CEO, LCM Consulting

62 View of the conference room of Aureole Fusion Restaurant

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From left: Dean Brabec, President of the CFO Club, Managing Partner CEE, Arthur D. Little, prof. Ing. Václav Klaus, CSc., former President of the CR

discussion event

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Czech economy, its current position as well as the vision of a change in the future, was the topic of the CFO Club session that was held on June 12 in the Grand Hotel Bohemia in Prague. High attendance was a prove of popularity of the invited speaker, the former Czech president Václav Klaus. Although an economist always focusing on his field categories, he declared the current crisis as not only a crisis of economy but the whole society with non efficient functioning of the state administration.

Aleš Barabas, Vice President, CFO Club, Member of the Board of Directors, UniCredit Bank Czech Republic

From left: Martin Herrmann, Member of the Council of the CFO Club, CEO, RWE East and Kamil Janáček, Member of the Banking Board, Česká národní banka

63 From left: Martin Novák, Member of the Council of the CFO Club, CFO, ČEZ and Peter Mikula, CEO, VINLAND

From left: Bořivoj P. Pražák, Member of the Council of the CFO Club, Senior Advisor, Arthur D. Little, Martin Čermák, Managing Director of equity investments, SPGroup, and Jakub Minařík, Manager, Arthur D. Little

discussion event

From left: Dean Brabec, President, CFO Club, Managing Partner CEE, Arthur D. Little, prof. Ing. Václav Klaus, CSc., former President of the CR

From left: Jiří Kunert, CEO, UniCredit Bank Czech Republic, Peter Mikula, CEO, VINLAND, and Ivana Goossen, Director, EMBA - Europe, University of Pittsburgh

From left: Michal Hašek, Director, KPMG Česká republika and Daniel Ryšávka, Senior Advisor, Advisory, KPMG Česká republika

Bořivoj P. Pražák, Member of the Council of the CFO Club, Senior Advisor, Arthur D. Little

Kamil Ziegler, Vice President, CFO Club, Member of the Board of Directors, SAZKA sázková kancelář

From left: Pedro Gomez, CEO, KCT Data and Josef Pravec, Journalist, Ekonom

64 From left: Jiří Hron, Sales Director, M.B.A. Empire LTD., Mojmír Boucník, CFO and CEO, AXA Česká republika, and Martin Herrmann, Member of the Council of the CFO Club, CEO, RWE

discussion event

From left: Karolina Králová, Václav Klaus Institute and Eva Kislingerová, Head of the Department of Business Economics, Faculty of Business, VŠE and Václav Klaus, former President CR

From left: Jan Rindt, Microsoft and Marek Huml, Partner, Stanton Chase International

From left: Michal Mareš, CEO, NB Financial Advisors and Zbyněk Hutar, Editor in Chief, CFO World

From left: Petr Vaculík, CEO, PSJ, František Vašek, Partner, ConPro, and Eva Vašková Čejková, ŽENY s.r.o.

View of the conference room at the Grand Hotel Bohemia

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From left: Aleš Barabas, Vice President, CFO Club, Member of the Board of Directors, UniCredit Bank Czech Republic, Kamil Ziegler, Vice President, CFO Club, Member of the Board of Directors, SAZKA sázková kancelář, Mrs. Eva Barabasová, Bořivoj P. Pražák, Member of the Council of the CFO Club, Senior Advisor, Arthur D. Little, Mrs. Milena Zieglerová, prof. Ing. Václav Klaus, CSc., former President of the CR, Dean Brabec, President, CFO Club, Managing Partner CEE, Arthur D. Little, Mrs. Iva Brabcová, and Martin Novák, Member of the Council of the CFO Club, CFO, ČEZ

interview A talk with Miloslav Kala, the President of the Supreme Audit Office

Photo: VladimĂr Weiss

interview

We should find out what happens when we throw a hundred CZK of our taxes into the machine called The State. Miloslav Kala graduated from the Faculty of Mechanical Engineering at the Brno University of Technology. He also studied Controlling, Crisis Management, and Marketing and Structural Funds of the EU. He was elected the Mayor of the City of Blansko in 2000 and until 2006 he was a member of the City Council. Miloslav Kala became an MP in 2002 and in 2006. He resigned in 2008 as he was appointed the Vice-President of the Supreme Audit Office (SAO). In 2013, Miloslav Kala was appointed the President of the SAO. He is married and has three kids. What are your priorities within the SAO? I’d like to contribute to the SAO by making it more up-to-date, dynamic and a highly-professional institution. However, my goal is to ensure a high-quality of supervision, by embracing and describing the most risky areas with regard to the state budget expenditure. I want the same measures applied to the SAO. We should practice what we preach. It seems that various government offices do not take the particular SAO findings seriously (at least so far it has been more or less this way). What do you think needs to be done to change it? I really disagree with this often repeated claim. I can name a lot of measures – starting with the legislative process, and up to the staffing process – that have been followed by ministers just on the basis of the supervision of the SAO. The fact is they don’t boast of these things. Yet, I find this quite natural. When someone from the next department recognizes a mistake in your work, you won’t go to tell your boss you corrected it just because of some criticism from your colleagues. So, what do the auditors encounter most often? Frequently recurring errors are numerous. The evergreens are errors in procurement, in the high cost of legal and advisory services, or wasteful purchases of materials and services. Yet, very frequently there is a lack of design, or inadequate design, or poorly set up rules of program funding. These finding are more serious, because it concerns billions of CZK. On top of that, it is clear that we cannot function well under the wrong rules. In what areas is the state a poor manager? Our supervisions are always based on careful preparation. First, we analyze risks in areas where there is wasteful and inefficient spending. Then, we try to map it within our controls. Thus, for example, we included among our priorities the public contracts awarded by the Ministry within the so-called negotiated procedure without publication, without open competition. Moreover, we want to focus on the bids within the IT area as well. And last but not least, we want to map the price of things that the state acquires or builds with taxpayer money in the long run, i.e. including

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the price of one kilometer of highway to the price of a stack of paper in the printer. Thus, we will be able to compare not only the ministries and other controlled institutions, but also follow the trend in state ﬁnances in the long-term. In this context, what is the trend over the last few years and what are we to expect in the future? I am not going to say that everything is wrong. It is deﬁnitely not. Many areas are slowly ceasing to be risky. For instance, overpriced bid contracts in the construction industry are not nearly as common as they used to be in the past. The problem is that there are people who claim to act in the interest of the state, but instead take money for themselves, and there always will be such “entrepreneurs” seeking new ways to do so.

budgets, be it in the ministry, county or municipality. To put it simply, we should ﬁnd out what happens when we throw a hundred CZK of our taxes into the machine called The State (if, for example, I get a roll for three CZK, bread for twenty CZK or a steak for eighty CZK in the end). Therefore, the SAO should have access to all levels, which the initial hundred CZK passes through. How do you spend your free time? I like walking in the mountains, I am an avid gardener and photographer, and one of my smaller hobbies is caving. And the biggest hobby? I have three smart children and a beautiful wife. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Could you give an example? I am talking about the IT contracts, in particular. They’ve become a gold mine, because the ordinary civil servant does not understand this issue and can’t understand it. Therefore, it is then easy to sell him a street medley at the cost of the exhibition purebred champion. Efforts to enrich themselves at the expense of the law therefore do not disappear, but we want to prevent the state from being in a position of a defenseless victim who just pays and pays. I believe that we will succeed, and that’s what the trend offers for the coming years. If I did not believe in it, I could not do this job, after all. In your view, should the competence of the SAO be expanded? In what areas could it possibly be done? I agree with the expansion of the SAO’s powers and really welcome this effort. However, I suggest that the MPs are actually going in a wrong direction. According to the Lima Declaration and Mexican Declaration, which have control of all public funds, here in the Czech Republic, compared to the Slovak Republic and the surrounding countries, it is reprehensible. The MPs are seeking an exhaustive list of competencies for the SAO. Hereby, obviously many conﬂicts occur leading to greater and greater compromises. What would be a reasonable solution? The political scene could agree that the SAO has to simply check every penny of the public

Leaders Magazine III/2013 67

russian victory day

From left: H.E. Sergey B. Kiselev, Ambassador of the Russian Federation and Miloš Zeman, President of the CR

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The Victory in relentless struggle against Nazism is sacred to all the nations of Russia and to our allies. 68 years passed, and for all these years the Victory Day has been our great common celebration. Here in the Czech lands was the last stronghold of German troops, and the liberation of Prague is one of the most glorious pages of history. The rapid advance of the Red Army and combating of Czechoslovak patriots made it possible to avoid casualties and destruction that had fallen upon other cultural and historical centers of Europe and thus to save the beautiful Prague. Basing on our historical traditions, we are optimistic about the growing Russian – Czech cooperation, which is built on principles of pragmatic approach and mutual benefit. For decades we have been partners in various fields, including the most high-tech sphere – world-class nuclear energy sector. This cutting-edge industry built by Russian and Czech scientists, engineers and workers contributes to providing the energy security of the Czech Republic. We presume that a solid, time-tested framework of our cooperation should be developed for the benefit of our nations. We do hope that the new prospects of Russian – Czech cooperation will be opened by the Temelin Nuclear Power Plant completion – the project that oce again unifies Czech and Russian interests and encourages us to act together. In conclusion, I would like to stress that it is our joint struggle together with the Czechoslovak people and our common victory that has been uniting us so far and will be biding us in future. I express my gratitude to the high officials of the Czech Republic, to regional and local authorities, to many ordinary Czech citizens for their kind attitude and keeping the memory of Red Army soldiers fallen for the liberation of Czechoslovakia. I congratulate dear war veterans and all those present on our common holiday – the Victory Day! I wish good health and prosperity to all of you.

From left: H.E. Sergey B. Kiselev, Ambassador of the Russian Federation in the CR with his wife on the left and Benke Aikell, your Publisher

From left: H.E. Yaakov Levy, Ambassador of Israel, Fawad Nadri, President, Czech-Afghan Chamber of Commerce, and Mons. H.E. Cardinal Dominik Duka, archbishop of Prague

68 From left: H.E. Hussain Saleh Majeed Mualla, Ambassador of Iraq, and Ing. Milan Hovorka, Deputy Minister of Industry and Trade

From left: Vojtěch Filip, Chairman, KSČM, Benjamín Szakal, Counsellor, and Jaromír Šlápota, President, ČSÚZ

russian victory day

Prof. Václav Klaus, former President of the CR with his wife Livia

From left: H.E. Jose Perreira Gomes, Ambassador of Portugal, and H.E. Diana Espino de Papantonakis, Ambassador of Uruguay

From left: Igor, Grebennikov, MPS Director for the Russian Federation and H.E. Zufar Abdulgaleev, Representative of the Republic of Tatarstan in the CR with his wife

From left: H.E. Cihad Erginay, Ambassador of Turkey, and Genc Pecani, Chargé d’Affairs a.i., Head of Albanian Embassy

From left: Ing. Viktoriya Kudrya, PR Director, Status magazine, Benke Aikell, your Publisher, Anna Ponomareva, Senior Counsellor, Russian Embassy, and Jadran Šetlík, wellknown photographer

From left: Jaroslav Čechura, General Director and Chairman of the Board, Mitas a.s., Jaroslav Musil, Marketing Manager, Mitas Tyres International, Mitas a.s., Jan Veleba, President, Czech Agrarian Chamber, and Doc. Ing. Václav Petříček, CSc., Chairman of the Board, Chamber of Trade and Industry for CIS Countries

69 From left: Mr. František Gajdoš, Mgr. Zdeněk Štengl, Chairman, SPOZ, and Fawad Nadri, President, Czech-Afghan Chamber of Commerce

Part of the invited guests. 4th in a front row, Petr Nečas, Prime Minister of the CR

From left: Ing. Oldřich Lomecký, Mayor, Prague 1, Mrs. Meda Mládková, Patron of the Arts, Owner, Kampa Museum, and Miro Smolák, Owner and Director, MIRO Gallery

From left: Ing. Pavel Franěk, President, Gastronomia Bohemica and Prof. Dr.h.c. JUDr. Jan Kříž, CSc., Attorney and Partner, Kříž and partners

From left: H.E. Ibrahim Ibrahim, Ambassador of Syria, H.E. Phaedon Anastasiou, Ambassador of Cyprus, H.E. Daniela Anda Grigore Gitman, Ambassador of Romania, H.E. Mohamed Salaymeh, Ambassador of Palestine, and H.E. Abdulrahman Al-Hamdi, Ambassador Of Yemen

70 From left: Ing. Petr Kubernát, Director, Pekos s.r.o. and Milan Mostýn, Communications Director and Press Spokesman, SP

Prof. Václav Klaus, former President of the CR and Inna Kuznetsova, Director of Cultural Department, RSVK

From left: Pavel Kotrba, Director, Cabinet of the Deputy Prime Minister of the CR, Karolína Peake, Chairman, LIDEM, and Mgr. Gabriela Froňková Dousková, MTF Zlatá Praha, Marketing and Foreign Relations Specialist, ČT

From left: Dr. Hynek Kmoníček, Director, Foreign Affairs Department, Office of the President of the CR, Ing. Miloš Janů, Managing Partner, Czech – Kuwait Trading Ltd., and Dr. Vladimír Mackrle, CSc., Managing Director, ECOFLUID

From left: Miloš Balabán, Ph.D., Head, CESES with his wife on the left, Lubomír Zaorálek, Vice Chairman, Parliament of the CR, Mr. Miroslav Polreich, Mr. Jožka Osoba, and PhDr. Emil Voráček, DrSc., Deputy Head, Dept. of History of 20th Century, Institute of History AS CR

russian victory day

From left: Vladimír Mlynář, Chief of Public and Government Affairs, PPF a.s. and JUDr. Miroslav Jansta, Attorney, Jansta, Kostka s.r.o.

From left: Karel Abraham, Chairman of the Supervisory Board, Brno Circuit, Gen. 4 star (ret.) Ing. Pavel Štefka, Ivana Ulmanová, CEO, Brno Circuit, and Mr. Tomáš Kužel

Petr Kolář, Ambassador, Chief of Foreign Affairs, PPF a.s. with his wife

From left: PhDr. Petr Hnízdo, Head of International Department, Ministry of Culture, Mgr. Jana Heřmánková, Service Director, AGF Media, a.s., and PhDr. Michal Lukeš, Ph.D., General Director, National Museum

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From left: PaedDr. Jaroslav Müllner, Head of the Secretariat of President of the Senate, Senate Chancellery, Josef Středula, Chairman, OS KOVO, Milan Štěch, Chairman of the Senate, and Michal Kadera, LL.M., Director External Affairs, Škoda auto a.s.

conference

CONFERENCE:

RUSSIAN BUSINESS Aleksander Raczynski, General Manager, GEFCO

On April 4, 2013 the first Forbes conference took place in the Czech Republic on the subject of Russian Business. This conference was organized with the support of the General Partner, Česká spořitelna and its corporate banking services, Erste Corporate Banking, along with its main partner, GEFCO logistics company and all under the auspices of the Czech Chamber of Commerce and the Russian-Czech Chamber of Commerce. Vladimir Ermakov, Chairman of the Russian-Czech Chamber of Commerce and Petr Kužel, President of the Czech Chamber of Commerce, arrived to discuss the current Russian-Czech economic relations, plans and expectations in the area of strengthening the bilateral collaboration. Roman Badanin, Editor in Chief of the Russian online Forbes, spoke of the curiosities of the Russian market and also introduced the Forbes list of top thirty Russian cities with the best business environments. Alexandr Turov, Trade Representative of the Russian Federation in the Czech Republic, Ivan Jukl, Director of the Economic Section of the Ministry of Foreign Affairs, Karel Havlíček, Chairman of the Association of Small and Medium-Sized Enterprises and Crafts CZ and Roald Piskoppel, Executive Director of the Czech-Russian Combined Chamber of Commerce, discussed strategic Russian-Czech partnerships. Martin Štrupl, General Director of Hamé, Jan Statečný, Export Director of Husky, Vladimír Plašil, Chairman of the Board of Alta Invest, Šárka Litvinová, owner of Asiana, and Aleksander Raczyński, General Manager of GEFCO, focused on how best to enter the Russian-Czech market and succeed. Miroslav Somol, Deputy Director of EGAP, Michal Bakajsa, Deputy Director of the Czech Export Bank and member of the board and Daniel Heler, Deputy Director of Česká spořitelna, discussed the tools for support of Czech exporters and Russian investors.

Roman Badanin, Editor in Chief, online Forbes Russia

Petr Šimůnek, Editor in Chief, Forbes Czech Republic

Discussion forum

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interview An interview with Alexander Raczynski, General Manager, GEFCO CR Mr. Raczynski, you were recently appointed General Manager of GEFCO in the Czech Republic. Can you tell us your plans in connection with your new position? I look forward to gaining new professional experience, as well as applying my previous experience to contribute to the success of the company. Besides that, it’s always exciting to encounter a new culture, meet new people and get to know the team I’ll be working with over the coming years. I’m sure this will enhance both my professional and personal experience. You began working for GEFCO in Russia in 2005. Please tell us a bit about your career path there? I began at GEFCO Russia at the beginning of 2005 as a financial controller and later became purchasing director. At the time, GEFCO Russia was quite small and it was exciting to watch how rapidly the company and team grew and be a part of this process. In 2008 I was promoted to the position of Managing Director of the JV GEFCO company in Russia, which was and is engaged in finished vehicle logistics services. After three years at JV and more than six years in Russia, I was asked to set up a new GEFCO subsidiary in Bulgaria. That was a valuable experience, establishing a business from the ground up. Two years later, I moved to the Czech Republic. A new position in a new country is always a challenge. Can you tell us what major challenges you face at GEFCO CR? Economic difficulties affected many companies during the global financial crisis, but GEFCO is among those who have remained strong. Our main challenge is to continue the further growth of GEFCO CR and, at the same time, ensure that

the highest-quality services are delivered to our customers. GEFCO always tries to find a balance between its growth and the quality and pricing of services for our client base. Furthermore, we strive to fulfill the expectations of our shareholders. After more than two months in GEFCO CR, has anything surprised you? Not really, although I was pleased to find that each member of the GEFCO CZ team is well-educated, enthusiastic about their work and willing to develop further. I am delighted to work with such people. What are your expectations, plans and goals for the future of GEFCO CR? GEFCO is a company with a more than sixtyyear tradition, operating worldwide with upwards of 10,000 employees in thirty-five countries. GEFCO’s history is closely connected to the automotive industry where we are still among the global logistic leaders. Since its establishment in 1949, GEFCO developed expertise in electronics, FMCG and other industrial sector. Those factors provide our customers with tailor-made solutions. My goal is to strengthen GEFCO’s image in the Czech market by showing in practice all the benefits of the experience the group gained over those past sixty years, thus expanding the range of our potential clientèle. What do you believe to be the benefits and strengths of GEFCO as a company? Being a part of the huge PSA (Peugeot Citroen) industrial group gave us the opportunity to gain experience in various continents and sectors. We had to work based on the standards applicable to one of the most well-known production companies, which is why GEFCO is known as a reliable partner and provider of high-quality services. In December 2012, after 75% of our company was acquired by Russian Railways, we changed the shareholder structure and, along with that, obtained additional capacity for growth and will thus now be able to provide client-solutions that include railway transport to various destinations.

to my life. So the most relaxing time of my day is playing with Nina, my ﬁve-year-old daughter. What are your hobbies, what makes a perfect free day for you? During my studies in Poland I was an enthusiastic rally driver. In fact, I have competed in about twenty-ﬁve rallies in Poland between 1996 and 2000, becoming the vice-rally champion of Poland in the Seicento Rally Cup and the winner of the Winter Rally in a Citroen SAXO in the N-2 group. So, if it is not a day with my family, a perfectly-spent day is one on a course with a lot of mud. Somehow I still have that passion for motorsport today and because of this I own an Enduro KTM motorbike. From time to time, my friends and I spend several weekends riding bikes in the Bulgarian mountains and once a year we go to Romania for a week of more extreme bike adventures. Compiled by LM ■

Moving to a new country and taking over a new position is deﬁnitely a demanding process. Can you share with us how you relax? I am fairly comfortable with adapting to new places, so I’ve already become used to the changes. Family values are of a great importance to me. Therefore, in my opinion, the most important thing when you move to a new country is to make sure your family feels comfortable in the new environment. And when this condition is fulﬁlled, you can be fully dedicated to the new job. I have an adorable child, who brings a lot of joy

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Leaders Magazine III/2013 73

student summit

From left: Dominik Židek, Deputy Chief Coordinator, Prague Student Summit, Michael Rozsypal, Chief Coordinator of the Prague Student Summit, Jan Hamáček, Vice Chairman of the Chamber of Deputies of the Parliament of the Czech Republic, Evžen Tošenovský, Member of the European Parliament, Jan Michal, Head of Representation of the EC in the Czech Republic, Jiří Nantl, 1st Deputy Minister of Education, Youth and Sports, and Antonín Berdych, Chairman of Supervisory Board, Association for International Affairs

XVIII. SEASON OF PRAGUE STUDENT SUMMIT was held under the auspices of Minister of Education, Youth and Sports Mr. Petr Fiala. The ceremonial opening welcomed many distinguished guests, among them H.E. Marie Chatardová, Ambassador of the Czech Republic to France, H.E. Norman L. Eisen, Ambassador of the United States to the Czech Republic, Jan Hamáček, Vice Chairman of the Chamber of Deputies of the Parliament of the Czech Republic and Jiří Pospíšil, Vice Chairman of the Chamber of Deputies of the Parliament of the Czech Republic

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Michael Rozsypal, Chief Coordinator, Prague Student Summit

Jan Hamáček, Vice Chairman of the Chamber of Deputies of the Parliament of the Czech Republic

Evžen Tošenovský, Member of the European Parliament

74 H.E. Marie Chatardová, Ambassador of the Czech Republic to France

Jiří Pospíšil, Vice Chairman of the Chamber of Deputies of the Parliament of the Czech Republic

Jiří Nantl, 1st Deputy Minister of Education, Youth and Sports

Prague among the prestigious UNESCO cities offers more and more options At the end of last year Prague celebrated 20 years from entering its historic city centre in the prestigious UNESCO World Heritage List. Along with the historic centres of Český Krumlov and Telč they became the first monuments in the Czech Republic awarded this honour. In addition, Mayor of Prague confirmed joining the Czech UNESCO Heritage association in mid-April of this year by his signature. Prague has thus joined a voluntary association of municipalities and towns in the Czech Republic with a monument listed in the UNESCO World Heritage list, or shortly, in the UNESCO List, on its territory. “With this step, Prague will achieve better promotion and easier access to money from European funds. In addition to issues of strengthening joint promotion, however, an expansion of possibilities of raising awareness and education plays a significant role,” said Václav Novotný, Councillor for Culture and Tourism. At present, Prague has been developing its status of a prestigious European city in the field of culture. Therefore it filed an official application to the so called UNESCO creative cities network, for a City of Literature at the beginning of this year. Literature in general has played a significant role in the history of Czech lands, and Prague has been a constant inspiration for both domestic and foreign artists. It offers a tradition of high-level literary culture in all its components, prerequisites of a country centre with a high level of education, relationship to book culture with a concentration of cultural institutions and professional organizations. By its initiative to participate in the network of creative cities in the area of literature, Prague seeks to achieve the position reached by Edinburgh, Melbourne, Norwich, Dublin, Reykjavik and Iowa City in this field. Cooperation with her Sister Cities is among the most important activities of the City of Prague in the field of culture on the international scale. Prague has a total of 26 sister cities, 14 of them are contractual, and with 12 of them it cooperates without a contract. It can be said that since the mid 1990s, most cooperation has been taking place on a non-contractual basis, and an offer of specific projects carried out either once-off or long term is decisive. Any such cultural event helps to raise awareness about the specifics of the given cultures, of their cultural background and last but not least it contributes to the development of important contacts. Last year, for example, a presentation of Prague in Riga through an exhibition and lecture on the topic of Prague Functionalism with an accompanying concert took place, along with Prague Days in Jerusalem, a festival of Czech national cuisine in Moscow or Prague Days in Tbilisi. The reciprocal Days of Tbilisi in Prague with a very varied programme – from exhibitions, theatre performances to the concert of Georgian vocal polyphony took place this year in April. The exhibition of Days of Czech and Prague Architecture in Bratislava presenting Prague functionalism with the work of the “AED project” design and engineering studio is taking place currently. Let’s mention Prague Days in Belgrade and Prague Days in

Chicago among this year’s most important events which are being prepared. In Belgrade, Prague will be presented through an exhibition and concert of classical music. The cultural presentations of Prague in Chicago, with its large group of Czech immigrants and the first mayor of the city of Czech origin, should be the most significant activity of this year. The main focus of the programme will be a commemoration of the former Czech President Václav Havel and presenting a symbolic gift to the mayor of Chicago – an original reduced-size copy of the wax heart made from candles lit by people on Wenceslas Square after the death of Václav Havel. A classical music concert introducing the Czech repertoire is prepared as well, along with a showing of Vaclav Havel’s film “Leaving”, and a documentary film “Citizen Havel,” and various presentations for tourists. In addition to the above mentioned events and presentations organized directly by the City of Prague, the city administration naturally supports tourism in general too. The attractiveness of Prague, backed by a strong cultural background, is very significant in this respect. We can say that Prague has long been among the most visited tourist cities in Europe. It attracts millions of tourists each year who in addition to its remarkable history and architecture increasingly come to enjoy its rich offer of culture and entertainment. Besides the historical centre – the largest urban heritage site listed in the UNESCO Heritage list, it can boast a number of attractions in the main tourist season that would be more difficult to find anywhere else. In the spring and summer months the gates of the city parks and historic gardens open, the Vltava River comes alive with cruise liners, cosy cafés and restaurants invite people to sit down, and rich programmes of cultural institutions guarantee that you will never forget the time spent in Prague. Apart of a rich historical heritage Prague offers quality metropolitan facilities with major accommodation options, good transport infrastructure with a number of tour operators and other important services. The number of historic landmarks will apparently always be the main attraction for tourists in Prague but a combination

of visiting the historic city with an established base of top-quality accommodation, good public transport, a wide network of restaurants, cultural and entertainment venues and offers of pleasant days spent in greenery, yet within reach of the City comfort has a great future.

Václav Novotný, Prague’s Councillor for Culture and Tourism

Leaders Magazine III/2013 75

golf tournament

Evening party British Business Mixer and Golf Award Ceremony at the Siddharta Café, Buddha Bar Hotel Prague Award for best player was bestowed by Mr Pavel Koutný, CEO, ICW

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Jaguar F-type Hole Nr. 9 Kinstellar Law Office and its flight From left: Jan Juroška, Managing Associate, Kinstellar, Lukáš Ševčík, Managing Partner, Kinstellar and Chairman of the Board of the British Chamber of Commerce, Hostess Jana, Jan Vratnik, Director, Erste Corporate Finance, and Jason Mogg, Managing Partner & CEO, Kinstellar

Partner of the tournament Vrána & Pelikán and its flight From left: Veronika Fajčíková, Director, Buddha-Bar Hotel Prague, Jaroslav Urban, Photographer, Luděk Vrána, Partner, Vrána&Pelikán Law Office, and Rudolf Vřešťál, Managing Partner, ASB Prague

Partner of the tournament LeasePlan and its flight From left: Bronislav Bůšek, Sales Director, Sherlog, Barbora Soukupová, Project Manager and Member of the Board, Sherlog , Jaromír Hájek, General Director, LeasePlan and Mr. Vladan Jesenský, Sales and Marketing Director, LeasePlan

Marcela Roche welcoming the guests

General partner of the tournament Charouz Motors and its flight From left: Petr Vladyka, CEO, FLEXIO a.s, Václav Staněk, Commercial Director, Charouz Motors, Jaguar and Land-Rover, Lubomír Vosáhlo, Owner, ProFoto, and Pavel Hochman, CEO and Owner, SETRA s.r.o.

Partner of the tournament Florentinum and its flight Mrs. Iva Nováková and Miloš Kocián

Partner of the tournament DP WORK Third from left: Milan Procházka, CEO, DP WORK, and his guests

Partner of the tournament PROVIDENT and its flight From left: Russell Johnsen, General Director, Provident CR, Lukáš Trnka, Internal Communication Specialist, Provident, and Tomáš Moldřík, Marketing Manager, Provident

Hole-in-one, Hole Nr. 10, JAGUAR XF 2,2 D, Vapour Grey From left: Silvia Bušniaková, Head of Networking, British Chamber of Commerce and Marcela Roche, Managing Director, British Chamber of Commerce

culture event

The Latin Art Gallery and Dallmayr Kaffee organized an opera recital by well-known Czech singer, Markéta Mátlová, in collaboration with the Romanian Embassy to introduce the Latin Centrum in Prague. Ambassador Daniela Gitman is a major supporter and encourages all embassies to support the Latin Centrum. Dallmayr Kaffee general manager René Sion, a lover of culture, is hosting the collection of the Latin Art Gallery in their premises made possible by the owner and manager of the gallery in Prague, Katerina Bohac Linares. The next step by this team is to open the Latin Centrum in Prague, which aims to disseminate and promote Latin culture in the Czech Republic, as well as to support the Latin community and facilitate the integration between all generations from the Czech Republic and Latin countries. They also want to create a space to exchange educational, cultural and artistic experiences. The recital was excellent. Markéta Mátlová delighted the public with selections from La Traviata, Candide, Don Giovanni, Rusalka and Les contes d’Hoffmann. After the recital, guests enjoyed tasty Dallmayr Coffee, wines from Veneto in Italy and Chocolates from Passion, Belgium as well as the Sivek hotels catering and the exhibition of original art from the Latin Art Gallery.

From left: H.E. Daniela Gitman, Ambassador of Romania, Markéta Mátlová, Singer, Mr. Cristian Gitman, and H.E. Pasquale D’ Avino, Ambassador of Italy

René Sion, General Manager, Dallmayr Kaffee with Kateřina Bohac Linares, Owner, Latin Art Gallery welcoming precious guests from Chinese embassy

René Sion, General Manager, Dallmayr Kaffee surrounded by Count and Countess Lobkowicz

Markéta Mátlová’s performance accompanied by Stanislav Gallin, Pianist

In the photo of the room you can find H.E. Ambassador of the Republic of Moldova, Stefan Gorga, H.E. Ambassador of Italy, Pasquale D’Avino, Albanian Head of Mission, Genc Pecani, H.E. Ambassador of Peru, Marita Landaveri-Porturas and H.E. Ambassador of Turkey, Cihad Erginay with wife Tommy.

77 From left: Katerina Bohac Linares, Latin Art Gallery and H.E. Marita Landaveri – Porturas, Ambassador of Peru with her mother

From left: H.E. Pasquale D’ Avino, Ambassador of Italy and René Sion, General Manager, Dallmayr Kaffee

From left: PhDr. Hrishabh Sandilya, Anglo American University and H.E. Cihad Erginay, Ambassador of Turkey

interview A talk with Milada Tomková, the Vice President of the Constitutional Court of the Czech Republic

LADY OF JUSTICE AND WISDOM THE CONSTITUTIONAL COURT HAS BECOME A FACTORY JUDr. Milada Tomková – graduated from the Faculty of Law of Charles University in Prague. From 1987 to 2003 she worked at the Ministry of Labour and Social Affairs, in 1992 as director of the Legislative Department. Within her legislative scope was social policy, especially social security. From 1998 to 2003 she was a member of the Legislative Council of the Government of the Czech Republic. In connection with the preparation of the reform of administrative justice, she conceived changes in accompanying laws on social protection (social security and employment). Milada Tomková was appointed as a judge in 2003, when she also joined the Supreme Administrative Court. Here, she held the office of the President of the Chamber of the Social Administration and Chair of the Disciplinary Panel. She was also a member of the Council of the Judicial Academy. Milada Tomková was appointed a judge of the Constitutional Court and Vice President of the Court, on the 3rd of May, 2013. You come from the Supreme Administrative Court, how different is it for you? It is undoubtedly a change, although the Supreme Administrative Court is entrusted with protecting the public’s subjective rights, and the protection must be provided by the Court in the most constitutional manner as possible. In this

Leaders Magazine III/2013

respect, we can see some common elements with the Constitutional Court as the protector of constitutionality. However, the Constitutional Court represents an apex within the Czech hierarchy of the protection of individual rights and freedoms. This is mainly reﬂected by its competence, including the repeal of laws, or its provisions which are in

conﬂict with the constitutional order. Its argumentative range often exceeds legally-philosophical considerations, and I suppose that it suits the Constitutional Court well. In addition, I was personally always attracted to areas closely related to constitutional law, such as legal philosophy or sociology of law.

interview What particularly does the position offer? As a judge of the Administration Law I am very experienced in dealing with a decision-making process of the Constitutional Court. On the other hand, a plenary session of 15 judges is rather specific. My first experience has been, however, very positive. The Constitutional Court, with regard to the number of things that must be addressed in plenary sessions, meets very often, which requires careful preparation and high efficiency from all judges. A fundamental change for me is the fact that the president has entrusted me as the Vice-President of the Constitutional Court. The Constitutional Court is currently overloaded by requests... The Constitutional Court is heavily overloaded indeed. Until 2005, it received around 3000 submissions annually. Last year, this number was almost 5000, and this year it is already 2,300 submissions within five months. Thus we can expect that 5000 requests will once again be received. Considering that this year has 252 working days, and there are only 15 judges of the Constitutional Court, it is obvious that the judges are working under pressure. The Constitutional Court has become a factory, where about 95% of the cases have been rejected, especially for apparent illegitimacy. On top of that, such activity needs an enormous amount of manpower and I’m not sure whether this method of protection of rights and freedoms is effective, not to mention the fact that we often can not provide the protection needed in a reasonable time frame. How many cases have you received thus far? I have already obtained 95 cases within four weeks, and in a short time “there will fall”, as we say in our legal jargon, a few dozen. Then again, there will be an equitable allocation of files to the judges. I immediately started to work on assigned cases, ever since my first working day at the Constitutional Court. According to the work schedule, for those acts which I will be a judge rapporteur, we will discuss them at all four Senates of the Constitutional Court, so I have to adjust my method and style of work to four different bodies. I also have to choose my assistants promptly. I’d like to form a team that will be very diligent and able to prepare such a huge number of cases within a reasonable time for discussion. Still, I guess that the delay in hearing the constitutional complaints will necessarily occur, and it is not humanly possible to prevent it. If this trend continues, we will have to look for immediate and systemic solutions that are not yet clear, for they may impede access to the protection of fundamental rights and freedoms, and it is certainly a solution that can be very difficult to support. What is the real impact of the Constitutional Court’s judgments on the legal order of the Czech Republic? I believe it is substantial, both in the realm of the abstract review of norms, ie. where the Constitutional Court is authorized to abolish the Law or its parts, and in the sphere of individual constitutional complaints. In the latter case, the interven-

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tion of the Constitutional Court ensures protection of the constitutional order of the guaranteed rights and freedoms. However, we can sometimes hear the one-sided views of the media in their findings of such terms as “war court” and “fighting of judicial egos”. I think that these views are not “burdened” by actual knowledge of the facts. Is this a trend? Of course, exceptions exist. Yet, I remember perhaps the only case after 1993, when the then Supreme Court defined the opinion of the Constitutional Court on illegal activities of the so-called military service dodgers’. However, the Courts in general respect the Constitutional Court in the Czech Republic. Moreover, a democratic legislator is responsible for the political culture in their timely reaction, which should be provided regularly by the Constitutional Court in case of the repeal of an Act or a part thereof. There are not many cases when it did not happen. The Constitutional Court has already established certain approaches on how to ensure the protection of fundamental rights and freedoms in specific cases. Could you be more specific? Hereby, the courts need to play a greater role. The legislature can, by inaction, empty a space that would otherwise be entirely full. But then do not let the politicians complain about judicial activism. You’ve been engaged in social policy work as well. In this respect, what is your view on the pension reform approved by the Coalition Government? First of all, I regret that in such a crucial issue we have not found an elementary consensus among our political elites, even after almost twenty years since the adoption of the reform of the Pension Insurance Act and the Supplementary Pension Act. For this, of course, concerns the security of the rapidly aging population. However, I believe

they’ve had enough materials and resources for their political decisions and consensus with regard to the expert standpoint. The reality is that people are living longer, and they also have higher expectations in terms of standard of living in old age. However, there will be significantly fewer of those who will be able to finance the state pension’s seniors. These are the facts that I came to terms with a relatively long time ago, when I was at the Ministry of Labour and Social Affairs. Thereby, our pension system has been adapting for years, and I believe that it is bearable for our citizens. Therefore, I don’t want create a “false reform” for those steps that has made our system relatively sustainable. Do you have time for your hobbies? How do you relax? I do not have much free time, for I am traveling between Prague, where I have been living for more than thirty years, and Brno, where I have been working for already ten years. My life teacher was and still is classical music. Up to leaving school, I actively played piano. In the following years the intensity has decreased, but still, though now only symbolic, I return to the piano. I am also really a lifetime poetry lover. To my preferred authors belong Vladimír Holan and Jan Skácel. Unfortunately, I don’t have enough time for theater and visual arts. In addition, I have a few lifelong friends who supported me and enabled me to overcome my recent difficult personal pain from the sudden loss of a life partner. I am happy to meet them very much. So, last but not least, I know there are new challenges in front of me at present, and I want to meet them the best way I can, as I have been trying at all professional positions in my life. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 79

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The concluding 11th annual Golden Crown competition took place at the TOP HOTEL Praha, as has become a tradition now. The gala evening brought together leaders of those financial companies winning awards, as well as top Czech economists and representatives of major financial institutions. The event took place on June 12, 2013 under the auspices of the Minister of Finance, Miroslav Kalousek. A duo of moderators, Václav Moravec and Barbora Černošková, hosted the evening.

From left: Petr Budinský, Vice Chancellor, VŠFS and Jaroslav Daňhel, Professor, Department of Banking and Insurance, VŠE

Winners of the Zlatá Koruna competition

From left: Zdeňka Indruchová, Executive Director, AČPM and Václav Křivohlávek, Deputy Head of the Department of Finance, VŠFS

80 From left: Hana Blovská, Vice Chairwoman of the Board, Conseq Investment Management and Michaela Kašková, CEO, Bevande

Martin Diviš, General Director, Kooperativa pojišťovna

Ján Franek, Member of the Supervisory Board, Fio banka

gala event

From left: Radek Dohnal, General Director, TOP HOTEL Praha, Benke Aikell, your Publisher and Mr. Vladimír Dohnal's wife

From left: Jan Švejnar, Director, IDEA at CERGE-EI and Vladimír Dohnal, Chairman of the Board, TOP HOTELS GROUP

From left: Michal Kebort, Manager, Zlatá Koruna and Petr Dvořák, Dean, VŠE

From left: H.E. Peter Brňo, Ambassador of Slovakia and Jan Mühlfeit, Chairman Europe, MIcrosoft with his wife

Libor Novák, Director of Operations, Allianz penzijní společnost

81 From left: Václav Moravec, Moderator and Ladislav Minčič, 1st Deputy Minister of Finance

Petr Kohout, General Manager, ALD Automotive

gala event IN COOPERATION WITH LEADERS MAGAZINE

From left: Václav Moravec, Moderator, Ján Franek, Member of the Supervisory Board, Fia banka, and Tomáš Macků, IPSOS

From left: Radek Dohnal, General Manager, TOP HOTEL Praha, Marta Gellová, Member of the Board, AFIZ, Petr Budinský, Vice Chancellor, VŠFS, and Petr Kučera, CEO, CRIF

From left: Jan Švejnar, Director, IDEA at CERGE-EI and Vladimíra Dvořáková, Head of Department, VŠE

82 From left: Josef Valter, Member of the Board, Fio banka awarded by Benke Aikell, your Publisher

From left: Jan Mühlfeit, Chairman Europe, Microsoft, Petr Zahradník, Chief Economist, and Václav Moravec, Moderator

gala event

Jindřich Holčák, Head of Customer Care, Patria Direct

Radek Basár, Deputy CEO for Marketing, Communication and Business Development, Komerční banka

Josef Valter, Member of the Board, Fio banka

František Hudák, Sales Director, OVB Allfinanz

Aleš Poklop, General Director, Česká spořitelna – penzijní společnost

Zdeněk Kučera, Director of Property Insurance, Allianz pojišťovna

From left: Ján Franek, Member of the Supervisory Board, Fio banka and Jaroslav Hanák, President, SP CR

From left: Václav Moravec, Moderator, Helena Piskořová, Product Manager, GE Money Bank, Ondřej Hájek, Project Manager, GE Money Bank

From left: Petr Řehák, General Director, Equa bank, Petr Kučera, Executive Director, CRIF

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From left: Iva Štylerová, Product Manager, GE Money Bank, Josef Libertin, Product Manager, GE Money Bank, and Pavel Doležal, Director, Zlatá Koruna

interview An interview with Pavel Jirák, Chairman of the Board of KB Penzijní společnost (KB Pension Company) and Member of the Presidium, The Association of Pension Funds of the Czech Republic

Final Chance for Czech Citizens over nd 35 Years Old to Enter the 2 Pillar Interest in the new pillars of the pension system is growing slowly among Czechs. Despite the slow start of the system, it seems in recent weeks Czechs are realizing the 2nd pillar makes sense for a great many of them. “Given the aging population and worsening state of public ﬁnances, private pension savings are the best we can do for us and our loved ones,” says Pavel Jirák, Chairman of the Board of KB Penzijní společnost (KB Pension Company) and Member of the Presidium, The Association of Pension Funds of the Czech Republic. Your pension company is among largest in the Czech market. How do you manage to encourage Czechs to enter the new pillar?

I would lie if I said we’re happy with the results and interest of Czechs. However, this corresponds with our expectations. In the last few weeks, interest is growing – particularly in regard to the fact that citizens beyond 35 years of age will not be able to enter the second pillar after July 1, 2013. We’re responding to thousands of daily requests and signing hundreds of contracts. Do you have a contract in the 2nd pillar yourself? I do. I’m convinced that entry to the 2nd pillar is advantageous to a great many citizens, not just those with above-average incomes. People close to me agreed when we discussed the possible arguments for and against entering. In most cases, the beneﬁts exceeded the uncertainty and fear of something new. Who beneﬁts by entry to the 2nd pillar?

Generally, various analyses show the 2nd pillar is particularly advantageous for younger people and people with above-average income. However, most of these analyses count on a presumption that state pensions will increase equally to average wages. Because of an aging population and lower birthrates compared to periods prior to 1990, it’s apparent that state pensions will grow slower than wages. We realistically expect that in 30 years or more, state pensions compared to average wages will be at half the current level. The 2nd pillar is financially beneficial to practically any young person up to thirty-five. I would even dare to say it will be much more beneficial than it appears today. Can you estimate how much the funds will increase in value? Of course, I cannot guess particular increases in value. It depends upon a whole range of factors. But purely from a financial model, using certain simplifications, I would say the 2nd pillar is the best financial product on the Czech market. Participant’s every deposit, in the form of a payment of social insurance increased by 2% gross salary, is matched by a 3% contribution from the state, allotted from the state pension insurance. This is a very decent increase in value. There is a decrease of the state pension, but it’s negligible, particularly for members with above-average income. Not only that, the savings can be inherited!

Leaders Magazine III/2013

The limit of 35 years is very important, because people older than 35 years can only enter the 2nd pillar until the end of June. How exactly does the age of the client inﬂuence the advantages of entering the 2nd pillar? For people between 35 and 55, entry to the 2nd pillar is more advantageous if they have at least an average salary. Additionally, as you say, Czechs older than 35 will have to make a decision by July 1st of this year. Younger Czechs can enter the 2nd pillar at latest by the time they reach 35, but given the goal of saving as much as possible for their pension, they have no reason to delay that decision until they are 35. A number of our readers are in top managerial positions or own their company. Brieﬂy summarize how the pension reform impacts employers? As a whole, the reform brought additional advantages to the system and new opportunities for employers to save costs in compensating their employees. In case of the 2nd pillar, the very important issue for employers is that 2nd pillar contributions on the employee’s behalf are easy to administer and only a minimal burden to payroll accounting. In case of the 3rd pillar, these advantages and economic arguments are generally known: the employer’s contributions are 100% expense items. Contributions up to 30,000 CZK per employee (prior to 2012 is was 24,000 CZK) are not subject to health and social care insurance payments, which is very important to some industries. Employers contributing to the 3rd pillar create better initial conditions for the requirements of early retirement. český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Proﬁle of KB Penzijní společnost KB Penzijní společnost is among the largest institutions in the area of pension savings. It is a 100% ﬁlial company of Komerční banka and maintains assets exceeding 33 billion CZK for more than 560,000 participants. In the last three years, it received The Best Pension Fund in the Czech Republic award. Contacts for KB Penzijní společnost: www.kbps.cz Information-line for employers 955 525 995 Toll-free information-line about pension reform 800 111 124

Penzak_2pil 234x325 Aj.indd 1

20.5.13 11:23

gender studies

WHY BABINECS

MEAN BUSINESS Let me share with you some data and after you review this information let me ask you: Can You Afford To Ignore It? A report from Ernst and Young titled Groundbreaker, published in 2009 included the following quote: “Women make up half of the human resources available to any country. If that half is not being channeled into the economy and not being made part of decision – making process, then that country’s economy potential is bound to suffer. As business leaders and policy-makers seek to navigate their way through this current crisis, they need the talents of both women and men more than ever to come up with the best solutions”. Saadia Zahidi, Head, Women Leader ProgrammeWorld Economic Forum Unleashing potential: Women’s Initiative annual Report 2012- Companies with women leaders perform better; 53% higher return on equity for companies with more women board directors; 42% higher return on sales and 66% higher return on invested capital. The top 20 organizations in the Business Week Best Companies for leaders are twice as likely to have more women in senior leadership positions. McKinsey study of 89 European listed companies with the highest level of gender diversity in top management posts and compared the ﬁnancial performance of these companies relative to the average for their sector. The companies with gender diversity outperformed their sector in terms of return on equity 11.4% vs. 10.3%; operating results EBIT 11.1% vs. 5.8% and stock price growth 64% vs. 47% over 20052007. I just returned from a three week trip to Europe. I had the joy to spend almost 10 days in Prague, one of my favorites cities, I always feel as if it is my second home. I had the honor to be hired by Microsoft to launch the ﬁrst women initiative program (SWIM) in Prague back in 2008 and since then I have been offering programs related to women and leadership development. During this trip, I was launching my book (Can You Afford To Ignore Me? How to manage gender and cultural differences at work) and was invited to talk at various events. I met women who labor in all types of industries and who held degrees from engineering, law, marketing, business, at both mid and senior level and the overall majority shared a similar sentiment- they are very interested in contributing to their organizations, they are eager to make an impact, and yet they

Leaders Magazine III/2013

struggle with the amount of what I call subtle resistance to be included and treated as full partners in the business arena. Some of the issues I heard are attributable to what I identify in my book as issues which arise out of the social, cultural and physiological differences amongst men and women. Other issues are quite speciﬁc to the Czech reality, such as reentry after maternity leave, access to networks that hold power and determine promotions, feeling heard and having their ideas taken in consideration just as their male colleges. Here is where you come in. As leader in your organization you have the power

and most importantly the influence to set the right “narrative” amongst your managers and directors. When I first visited Prague in 2007, diversity was and I quote a very senior Czech woman, “a nice idea but nor for Czech companies”. This last week I was so thrilled to talk and participate with many women and men who are directly and indirectly working with diversity at all levels! So here is what I would like to leave you with. If this data is in any way significant to you and you have already started to move forward trying to shift the role of women in your company, start today to reconsider your top 3 priorities for growth and make gender balance your guiding force. You need to get women not only hired, but fully engaged and fully promotable to positions where they can influence outcomes-it is good for business. The Czech Republic gave the world the example of a quiet revolution; perhaps it can also set the example for the most important revolution in the 21st century, gender integration. By: Elisabet Rodriguez Dennehy President Rodriguez and Associates LLC ■

Photo: Archive

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the coach’s corner

PEOPLE DO BUSINESS WITH PEOPLE THEY LIKE “I have come to believe that connecting is one of the most important business – and life – skill sets you’ll ever learn. Why? Because, flat out, people do business with people they know and they like”. Reading Keith Ferrazzi’s words in his book “Never Eat Alone,” I thought about how long it took me to understand what he was talking about. Looking back on the eighteen years I have been living in Prague, I can think of many interesting and influential people that I have had the luck and privilege of meeting. I also have to admit that without these wonderful people, I never would have enjoyed even half the personal and professional successes that I have been fortunate to achieve. Why? Because it is much easier to make a sale, build a partnership or find a job with people that we already know than it is with people we have just met. People with a large circle of contacts, mentors and friends know that you must reach out to others long before you need any help from them. That is why it is preferable to establish a relationship and build a network before you need it. If you start reaching out to others only when you need a new job or a recommendation for a project, chances are you won’t get very far. In 1974 sociologist Mark Granovetter discovered that although personal contacts are the key to opening doors, the most powerful contacts are not our family and close friends. On the contrary, the most important people in our social and professional network are our acquaintances, for the simple reason that our closest friends and connections go to the same parties and generally move in the same circles as we do. That is why they seldom know information that we don’t already know. On the other hand, people with whom we share a less significant tie, usually move in a different world than we do. They associate with different people and have different interests and hobbies. Malcom Gladwell expands on this idea in his book Karin Genton-L’Epée is a business coach with 31 years of extensive professional experience in the United States, France and the Czech Republic. Based in Prague since 1995, for the past 15 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.

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“The Tipping Point” where he writes: “…acquaintances, in short, represent a source of social power, and the more acquaintances you have, the more powerful you are.” The key is not only to know a lot of people, but to know many people from various backgrounds who move in different social and professional circles. While most of us would agree that having a network of people, both friends and professional connections, is vital to achieving our goals, the majority of us also acknowledge that we have no idea about how to go about creating this network. Step one: Meeting people Get out and join a social group. You won’t meet anyone by staying in the office and working on your computer. Become an active member of a business association such as a chamber of commerce or other interest group. Get involved and volunteer your time and expertise. We feel most comfortable when we are doing something we enjoy, particularly with others who share our enthusiasm. Any hobby, be it politics, sports, music or public speaking, is an opportunity to get involved. And when you think you’re ready, become one of the leaders of the group. The experience will give you great exposure as well as the chance to keep on improving your social skills. Do your homework and get organized. Before going to any social gathering or professional event, do some research so that you’ll know what to expect once you’re there. Find out who is supposed to be at the event and make a point of introducing yourself. Once you have made their acquaintance, be sure to follow up with a quick email or telephone call the next day. Make it a goal to introduce yourself to at least one new person every week. It doesn’t matter if you’re in the tram, at the airport, in the office, or at the pub after work. The purpose of this exercise is to motivate you to talk to someone you’ve never met before. The worst thing that can happen is you’ll get a cold shoulder. At best, you may meet someone interesting and make a new friend. Regardless of what happens, it’s a fantastic learning situation. Making a connection with people is a never-ending process of giving and receiving. You ask for help and are asked for help in return. One surefire way of boosting your profile and expanding your network of contacts is to find ways to make other people more successful. To reap the rewards of networking, you often have to give more than you get. Former U.S. President Bill Clinton is renowned for having mastered this. Keith Ferrazzi describes him as someone who “has a unique ability to create an almost instantaneous intimacy with whomever he’s talking to. Clinton just doesn’t recall your personal information; he uses the information as a means to affirm a bond with you” Not everyone can interact with people the way Bill Clinton does. However, we can all learn to make connections with others easily and comfortably.

Step two: Connecting with others Reach out and initiate the connection in a friendly manner. It will make others instantly like you, since most of us are shy and uncomfortable when we have to make the ﬁrst move. Share your passion. Our passions and hobbies are what make us interesting to other people. Unless you’re Steve Jobs and business is your passion, most of us are usually more animated when we speak about our personal interests than when we talk about our jobs. Listen to and showing interest in the people you meet. This is obviously one of the surest ways to make a connection. We all appreciate people who make an effort to listen to our ideas and opinions. Follow up. Once you have met someone new, be sure to keep the connection alive by following up with a short email or phone call after the meeting. How many business cards do you usually give away over the course of an evening and how many people have actually taken the time to get in touch with you afterward? Be prepared to share your own network. If you want people to send business and referrals your way, you’ll need to offer the same in return. The more business you feed to other people, the more they will feed back to you. From building new contacts to making new friends, learning to connect with others is an invaluable skill that will consistently present you with new opportunities. And the rewards you’ll gain through sound networking will outnumber the occasional dead-ends or disappointments you’ll sometimes run into. Before you know it, you will have sharpened your communication skills, exchanged ideas and information with diverse groups of people and uncovered new and exciting opportunities, often in the most unexpected situations. Ultimately, connecting means contributing: to your friends and family; to the company you work for; to your clients and suppliers; and to your community. If you see your connection with others as a vehicle for enhancing the quality of your life and theirs, people will enjoy meeting you, they will like you and enjoy doing business with you. ■

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interview An Interview With Maxim Behar, Chairman of Hill+Knowlton, Czech Republic and Chairman of the Board of the World Communications Forum in Davos, Switzerland

interview Maxim Behar is a dreamer and visionary for a better, more dynamic world and also a practitioner. He likes chatting, networking, serious business projects, social media, rock music, gadgets and travelling. He was born in Bulgaria, but he always says he is a «Citizen of the world». Maxim worked for almost 15 years as a journalist, including several years in prominent Czech magazines Mladý Svět and daily Mladá Fronta in the early 80s. Apart from that, he has a long career as a journalist in Bulgaria, travelling in more than 65 countries throughout the world, becoming a Board Member in many local and international communities. He is the founder (1994) and CEO of one of the leaders of the Bulgarian PR market: M3 Communications Group, Inc. The company is an exclusive associate of Hill+Knowlton Strategies in Bulgaria. Since January 2012, Behar has also been Chairman of Hill+Knowlton Czech Republic. In March 2013 he was elected Chairman of the Board of the World Communications Forum in Davos, Switzerland. Behar is the Honorary Consul of the Republic of Seychelles to Bulgaria. Mr. Behar, you are a very interesting and fascinating person, dreamer and visionary, a man of many interests and activities – so to begin – can you tell our readers more about your journey from Bulgaria to the Czech Republic? It is a long journey and an everlasting love. I came to Prague back in 1981 to study International Business at the High Economic University (VŠE) and just a couple of months later I was sitting in a coffee shop and a middle-aged man sat next to me and we started a friendly chat, although my Czech language skills were relatively limited at the time. And the next day I was employed as a junior in Mladý Svět, the most widely circulated and influential magazine at that time. The name of the man in the coffee shop was Ales Benda, a great journalist, the first General Director of ČTK after the collapse of the communism and long-time Washington correspondent of the agency afterwards. We worked many years together. I was studying economy, but at the encouragement of my colleagues from Mladý Svět also began to study journalism at Charles University. At the end of 2011, after a long conversation with the then Hill+Knowlton European President in London and discussing the possibility of taking over the Prague office, I very honestly asked her, “Sally, how do you know I speak Czech?” She turned to me in surprise, and said: “Max, you speak Czech? Too good to be true!” A week later I arrived back in Prague as Chairman of the Hill+Knowlton Strategies office in the country, representing the largest Public Relations and Public Affairs company in the world. It was a very responsible and – now I can say – tough job to do. The Hill+Knowlton office in Prague had a very long and sometimes controversial history in the Czech Republic. But at the end of the day I managed in less than an year to create an excellent and knowledgeable team and now, for sure, it is one of the best companies in our business you will find in Prague. After graduation, you worked as a journalist, beginning your career in 1981. Can you tell us

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why have you chose journalism as a profession and what led you to that decision? It was a spontaneous decision, let me say an internal feeling, but my years at Mladý Svět in Prague were unforgettable and turned my future life in a completely different direction. After I got my masters degree in Prague, I spent a couple of years in Bulgaria as a journalist and then, just before the collapse of communism, was sent as correspondent to Warsaw. Who was the most interesting person you interviewed? There were so many… but one of the most significant interviews I had was with President Vaclav Havel in 1995. We spent several hours together with him and my good friend and prominent photographer, Miroslav Zajic. Havel was an amazing person and an unbelievably interesting entertainer, especially on Friday afternoons. He was relaxed, had an excellent sense of humour and was very positive about the future of his country. Let me tell you a story that happened during one of my meetings with the then Polish president, Lech Walesa, which I‘ve never shared before. In June 1995, I was waiting for him at the Belvedere Castle in Warsaw and he came straight from the airport, where he was escorting President Bill Clinton at the end of his first visit to Poland. Logically my first question was, “What did you say to President Clinton in farewell?” Walesa answered straight out, “I told him, Mr. President, the generals must come back to Poland. All the generals must come back and then everything in my country will be OK.” I was really surprised. In Poland, a country that had military rule in the early 80s, the topic of generals was quite sensitive and it was very unusual for a personality like Walesa to even think about that. My face showed my surprise, but the Polish president quietly continued answering my question. “Yes, only the generals will save my country, Mr. Behar. General Electric, General Motors, General Dynamic.” All we laughed heartily at his answer and it was so funny and also true that his words were quoted by all the international news agencies throughout the world that very same day.

In 1994 you founded M3 Communications Group, Inc, where you are currently the company’s Chief Executive. (M3 Communications Group, Inc. is the leader in the field of public and media relations in Bulgaria). How did your company change throughout these years? How did your role change? In fact all my business – Public Relations – turned upside down. And the reason is very simple – social media. Some 10 years ago our clients were coming to the public relations companies with, generally speaking, one simple request. To reach their clients through media. At that time the business approach was quite clear. We would arrange a press event, make a presentation, a conference or direct promotion. But in any case, the most important thing was to attract media attention. Now it is entirely different. The main reason is what is often called by me the tsunami of social media, which created a completely new order and priorities in our business. First of all, our clients already own media, they all are on Facebook, LinkedIn, Twitter and all other profiles and accounts. What they don’t know is how to handle and manage these profiles and how to make their content attractive. Content turns out to be the most important tool in modern Public Relations. All those facts made our business completely different and, of course, my role as Chief Executive in Sofia and Chairman in Prague also changed. The modern management, the modern business belongs to horizontal, not vertical, structures of management and from that perspective I am nowadays just one of my staff. And it’s a great role, just serious enough, responsible and, trust me, not easy to play.

Maxim at official presentation of his book 111 Rules on Facebook

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interview Maxim and Prince Charles

In 2004 you were appointed Honorary Consul of the Republic of Seychelles to Bulgaria. How did that happen? It was and still is, an amazing and beautiful story, like many others in my life. Maybe ﬁfteen years ago, I received an email from a friend of mine in Paris that the founding President of the Seychelles, Sir James Mancham, would spend a day in Bulgaria and it was possible that we might have lunch or dinner together. In fact we had them both, lunch and dinner and we liked each other so well that we became great friends. Some years later the then President of Seychelles, James Michel, appointed me Honorary Consul and I’m very proud and privileged to help and serve such a small, brave and capable nation. Throughout the years, I have done tens of extremely successful and beneﬁcial services for Seychellois projects. Maxim and Václav Havel

You have met and organised meetings with people like George W. Bush, Hillary Clinton, the Prince of Wales. We can extend this list and it might take many pages to fill. The most important thing I always try in all these important meetings is to remember at least one important sentence, word or act that I can find useful in the future. Many times such events changed my life, my businesses and my points of view. “Can you describe your country briefly”, Prince Charles asked me during one of our regular meetings, when I was Chairman of the Bulgarian Business Leaders Forum. The conversation just began and we had no common points to discuss, on top which, describing your own country in just a few words is always the most difficult task one might have. I looked at him with a very innocent face and said briefly, “Bulgaria, Your Royal Highness is a WWW country”. “Oh wonderful”,

Prince Charles replied, “that means people there are very advanced on the Internet. Good to hear, this is the future”. Then he was silent and looked at me again. “No, I said. WWW means Weather, Women, Wines…”. Of course it was just a joke and a funny game of words, but Prince Charles began to laugh and it was obvious the ice was broken and the conversation went more than an hour in a completely friendly manner. All my meetings were accompanied by amazing and interesting facts and situations. During my conversation with Vaclav Havel, I asked him when was he was first offered the presidency. Havel thought for a while and then quite unexpectedly answered, “In 1968”. The current year was 1995 and, for me, it was a statement not to be believed. “Yes, Havel continued, In early August 1968, just before the Soviet occupation, we met in the mountains with the famous Polish dissident, Adam Michnik. And he told me, one day you must be president of this country. So, thirty-two years later, it happened”. By the way – Adam Michnik is still alive and remains editor-in-chief of the largest Polish daily newspaper, Gazeta Wyborcza and for sure he would remember this story… Lately very interesting news hit Czech media, that you have been elected Chairman of the Communications Forum in Davos, which is a fantastic success. Can you tell us your feelings? Can you share with us your plans for the future? It is an enormous achievement, indeed. Not only for the Czech Republic and my native Bulgaria, but also all of Central and Eastern Europe. Over recent years, the World Communications Forum in Davos turned into a leading Public Relations, Public Affairs and Social Media event on a world-wide scale. What I will share here, for the first time, is that very soon we plan to organise, under the Davos ‘umbrella’, a Regional Forum in Prague and this will be my first serious innovation after taking over the management. I am pretty sure it will be a very successful event and also a great opportunity for the Czech market and Czech public relations businesses to participate in a world-scale event. Maxim, you are truly a renaissance man, full of interests, wisdom, experiences, plans and projects. Can you describe for us how an ordinary day for such a man looks? That’s exactly the beauty of my business and personal life. Every day is different. You might be surprised, but I wake up every day at 7.01 and please don’t ask me why this one minute exists. My explanation is that as long as I must wake up around 7, something should remind me that I must be Number 1 today. Then meetings, travel, endless sleeping in airplanes, junk-food at airports and, at the end of the day, a glass of fine red wine in the hotel’s lobby bar. When I stay home, evenings are far more enjoyable, with fresh salads, crystal clear Bulgarian Grappa and, of course, good conversation with good people. by Lenka Koenigsmark ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013

energy analysis

Digital Services or Broadband Europe’s Dilemma? In October 2011, the European Commission presented a detailed plan to significantly improve the trans-European infrastructures. The so-called “Connecting Europe Facility” is one of the most innovative funding programmes of the EU’s next financial period 2014–2020. The core idea behind was to complete the missing links in Europe’s energy, transport and digital core infrastructure. More specifically, it should support the building of new railways, roads, electricity grids, pipelines and highspeed internet (broadband) networks. The planned overall investment in infrastructure networks amounted to around 50 billion euro. Regarding investment in broadband and pan-European digital services, the Commission intended to earmark 9.2 billion euro, predominantly for deployment of high-speed internet connections. The original proposal also envisaged attracting additional funding from both private and public sources – and in some projects anticipated a multiplier effect of up to 15! In the meantime, the sands have changed. Due to austerity measures, the EU’s 27 leaders assembled in the European Council in February this year and agreed to decrease the budget under the digital heading of the Connecting Europe Facility to 1 billion euro. Some people say that cutting the subsidies for broadband is penny wise but pound foolish. I am deeply convinced that it is not worthy to waste time in such debates. As a parliamentary rapporteur responsible for the file, from the very beginning I broadly welcomed and supported the main elements of the Commission’s proposal. However, there is a clear necessity for budgetary discipline. Today, all three EU institutions - the Commission, European Parliament and Council of ministers – must respect the current state of play including the allocated budget. Now, the time is ripe for negotiations on the revised proposal. With a budget of only €1 billon to work with, the European Commission will certainly put more emphasis on digital services and leaving only a small amount for high-speed internet projects. One could say that first, the broadband infrastructure should be built to deliver the services to the citizens. Though, this is not a chicken and egg situation, both are equally important! There should be no dilemma.

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Let me start with broadband. I believe the key shortfall is associated with differences between urban and rural regions, where citizens and businesses cannot connect to high-speed internet and benefit from online services. As rapporteur, bridging the digital gap was the core objective that I have been defending. Another point I have repeatedly underlined in the past is becoming an even more topical issue. Every European cent must primarily aim at encouraging private sector investment. The priority should be given mainly to sparsely populated areas where competitive private markets do not exist, due in the main to a lack of recovery of initial costs. In any case, public funds must be prevented from distorting the competitive environment wherever it exists. For such “seed funding” other sources should predominantly be activated, such structural and cohesion funds and also national and regional sources. With a newly defined budget the cross-border digital services such as electronic identification, e-procurement, eHealth or network security have gained more prominence in our discussions, al-

though the original proposal assigned a considerably smaller share compared to broadband. The shortlisted digital services are of public nature and therefore the public investment is well justified in addition to the use of grants to support the development of these services. Information and communication technologies represent a dynamic and rapidly developing field. In line with my long-term position I am ready to advocate a decisive influence of the EU’s Member States in setting the priorities and selection of projects of common interest. All actors involved hope to have a final deal on the digital part of Connecting Europe Facility in the autumn of this year. I will be pleased to update Leaders Magazine readers on the progress and also on other interesting topics discussed in the European Parliament. By Evžen Tošenovský ■ Member of the European Parliament český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 91

interview

An Interview With the Chef

interview When did you discover the passion for cooking? Did you always intend to become a Chef? Gastronomy has always been my passion and already since childhood I have made my mind about my future job – being a Chef. After I graduated I started to work in restaurants and step by step worked up to the position of Chef. I began at the Savoy hotel and afterwards I mainly focused on French cuisine restaurants. What is in your opinion the most important thing while cooking? The key factors are a creative mind, fresh ingredients and harmony between taste and the aesthetic element. Another key factor is to achieve a rather simple process to create an elaborate dish. Time, space and the use of your products with efﬁciency is paramount. This is what I try to do at Aquarius restaurant. We offer a Mediterranean experience combining the extraordinary taste of a large variety of ingredients with a beautiful presentation and wonderful service.

Aquarius Garden

to see this development in Prague. We still have a long way to go compared with other big cities in Europe but we are on the right track. We, for example, provide a baroque gardencourtyard in our restaurant open from spring to autumn that is unique in the city. The setting that it provides is just spectacular and matches perfectly the dishes that come out of our kitchen. The service is also excellent and during the weekend days all this is accompanied by Yves, our pianist. I have never experienced as a costumer something similar. This deﬁnitely sets us apart from the rest. What are your next projects ? We are now opening our Alchymist Club Garden located at The Alchymist Nosticova Palace. I have created a very fresh menu for the summer months and we are also offering an open air grill during the weekends. It is a fairy tale place that provides also a unique experience. Besides that, at Aquarius I am working on a new variety of dishes that will come out in our new menu at the end of this month. I am creating What is your favorite dish on the Aquarius menu? It is hard to say. However the menu of our Moser table is quite unique. It is a well balanced and beautifully presented menu served on our most beautiful table next to the courtyard garden and set up with a fantastic Moser crystal collection. It is an exceptional dining experience. The menu includes baked St. Jacques scallops, grilled veal medallions and Milanese risotto served with 22ct gold leaf. We are also well known for our Milanese risotto among the Italian community in Prague. What sets you and the Aquarius restaurant apart from the other restaurants? I think in terms of food we are up there in the selected top restaurants in Prague. Nevertheless, fortunately there are many good chef in Prague and a restaurant experience is not just mainly based in the food anymore. This is a sign of development in the gastronomical experience of any city and the customers are staring

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dishes with a fish and seafood base to profit from the beautiful fresh fishes that we have in hand the for next few months. I am currently working on the

presentation of the dishes because I want to bring the best of its colors and textures. This is the most creative part of the kitchen and I think all Chefs love it. Compiled by LM ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz Aquarius Restaurant

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interview

A talk with ZdenÄ&#x203A;k Ĺ tengl, the Chairman of the Party of Civic Rights-Zemanovci

interview Mgr. Zdeněk Štengl – Graduated from the Faculty of Education of the University in Hradec Králové. He also graduated from The Jan Amos Komensky University Prague in management and psychology. In March of this year he was elected the Chairman of the Party of Civic Rights-Zemanovci (SPOZ). He currently works as a member of the Council in the Region, where he is primarily responsible for drawing EU subsidies and EU funds for transport infrastructure. His big hobby is history, and he wrote a book about the history of the municipality Vysočina. In his spare time, he enjoys his extensive garden. He is married for the second time and has two children. With his current wife, they are having new baby. “I am a person who started from scratch,” he says. And in the same breath, he adds, “and that’s why I am probably successful.” What rights does SPOZ actually defend? We’ve asked Zdeněk Štengl in this interview... The name of your party suggests that the citizen matters above all. Where would your party stand on our political scene? I don’t like dealing with the left or right wing division. The citizens need to take priority above all, as they are the integral unit of society. Everyone from babies to pensioners has their rights. However, not all rights are observed in our country in accordance with the Charter of Rights and Freedoms. In addition, our goal is to extend the political rights of our citizens as well. This is certainly a topic for a deeper discussion, however, what do you propose in this respect? How else can a citizen gain his rights than by the means of a direct democracy, i.e. by plebiscites or by the means of a recall of the politicians? I really regret that, for example, their has not been a decision on restitutions via plebiscite. Moreover, I firmly believe that our integration into the euro zone will be decided by citizens with a free plebiscite. These are our primary values within the political field. And in the field of economics? Here we defend the interests of both the employee and the employer. We have an interesting platform for entrepreneurs, because we prefer investments to consumption, which is our main pillar. The Czech Republic has long been suffering from heavy underinvestment. And if entrepreneurs have no incentives, and can’t draw investment, of course they can’t employ citizens either. Thus, the key thing is to create new jobs, which is also in the main interest of our citizens. So, the most important thing is to support the big investors? Surely not, our economic program is complex. The self-employed are equally important to us as well. Today, there are one million of them; they are the nerve of the entire economy, which is basically built on the self-employed. I would never dare call them parasites! Who is the author of SPOZ’s main ideas? Of course, our Honorary Chairman, President of the country, Miloš Zeman. On his thoughts and visions we have developed a pre-election program called Program of the needs of change – Program 300. This is actually the first 300 days in which we would have to make decisions on several issues in the Chamber of Deputies after the election. Who would possibly want to form a coalition after the elections? We agreed on that, not only with our Honorary Chairman, that if our party got into government,

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we would not trade our program for several ministerial posts. With whom would you possibly want to form a coalition after the elections? We wouldn’t trade our program for several ministerial posts if our party managed to be part of the new government after the election. We agreed on that, not only with our Honorary Chairman. Why? It chiefly concerns our program, and we don’t want, and cannot be held back by the excessive compromise of an uncertain coalition agreement. On the other hand, we are definitely not an enemy of any political party. We are obviously a rival, and may eventually be a partner, which is what we managed well within the Pardubický Region. Our utmost priority is the implementation of our program, which we see as a commitment to our citizens. And most importantly, we advocate a nonideological policy. Even as a non-parliamentary party, we pushed through the direct election of the president. At the parliamentary level we want to enforce additional points of our program. Can you be more specific? Let me answer with a question. Do we have a left-wing or a right-wing health care system? The same relates to the transportation and other sectors of our economy. And we want to avoid eventually joining the government, in case we are asked to do so. Thus we prefer our program to the possible co-operation of governments. In addition, our system of petitions proved to be a great tool, as well. What did it concern? I am particularly talking about a petition aimed at the direct election of the president. Some parties appropriated it later, and I have to say that it was SPOZ who arranged for the direct election of the president. Can you be more specific? We’ve managed to gather more than a hundred thousand signatures aimed at the direct presidential election. The other petition was used to support Miloš Zeman. We’ve also gathered more than a hundred thousand signatures. In general, we have great experience with petitions. We are aware that if it regards the topic of our citizens’ interest, they are happy to support it. In this respect, we’ve been preparing a similar petition event for the beginning of June. What are your priorities for the upcoming election? Unemployment, including the investment incentives, the fight against corruption, the recall of

politicians, the direct election of mayors and regional governors; these are the issues our citizens are mostly interested in. How do you want to create the investment incentives? Entrepreneurs do not care much about tax cuts, yet they are really concerned about larger and more strategic export promotional support from the state. Right now, I have an invitation from the CEO of Tatra Kopřivnice. He asked me for an appointment, because he is particularly attracted to our system of export promotion. And we will do everything we can to support such initiatives. I really appreciate it. And it seems that we are the only one of all political parties that received that letter. Another company that approached us is Plynostav Pardubice, and I have information from others who have learned about it and are interested in it. Yet, the current government says it has had a strong export promotion policy. But there are many companies of the so-called “family silver” standard which have had difﬁcult times recently. These are companies with a long tradition here, that have new management, that tend to employ our citizens, and we need to give them a helping hand, and at the same time, equalize conditions for domestic and foreign capital. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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ambassadors without diplomatic passport

Pavlína Rychterová AUSTRIAN ACADEMY OF SCIENCES Pavlína Rychterová worked at universities in the Czech Republic, Germany and Austria, where she led several international projects. In 2010 she received a 25 million grant from the European Research Council for research on medieval literature. What may have helped her get the grant was winning the prize of the German Scientific Organization for young scientists and in 2004 she won the Wichterle’s Award from the Czech Academy of Sciences. Rychterová studied Czech language and history at the Philosophical Faculty at the Charles University in Prague. She then worked at the Czech Academic Science’s Historical Institute and the Institute for Czech Literature. For a short while she worked in the private sphere, a commercial organization of exhibitions and in marketing. For a year she was an adviser to the chairman of the Parliament of the Czech Republic, Milan Uhde. In 1997 she returned to science and gained a doctorate of history and Slavic studies at the University of Constance. Between 2003 and 2009 she led a shared scientific project of the University of Constance and the Center of Medieval Studies of Philosophical Institute of the Czech Academy of Sciences. She currently works at the University of Vienna and is a member of the Young Curia of Austrian Academy of Sciences, Collegium Budapest, Collegium of Center of Medieval Studies in Prague and Collegium of young scientists at the Heidelberg Academy of Sciences. Pavlína is the author of two books about Czech translations of the visionary legacies of medieval saint, Brigita Švédská. She is fluent in German, English and Russian. She can speak French and Italian. From the dead languages, she works with Latin, Greek, Church Slavic and medieval German and Italian.

Photo: Martin Suchanek

Leaders Magazine III/2013

ambassadors without diplomatic passport First, traditional question – how do you perceive today’s world? That depends on whether I read the newspapers carefully or not. If I have time, I usually read Czech Respekt, Austrial Falter, German Spiegel, British Economist and for world news, Neue Züricher Zeitung. Consequently, I usually feel like the world is going down, especially because the global capitalistic organization of society neither leads to general enrichment of society, nor the equal administration of resources, a just division of incomes, increase of democracy or improving the living standards of people. On the contrary, it leads to accumulation of a vast majority of resources and incomes in the hands of small groups of the globally super-rich, and consequently to even bigger social misbalance and dangerous limiting of the maneuvering space of democratically elected political representations. I’m not talking about non-democratic systems, there the possession of resources and incomes is covered by the political power. I don’t consider it to be primarily moral problem, but an economic and political one. Sometimes I’m a bit afraid of the future. Like most of us, I’ve experienced a nondemocratic system and I wouldn’t want to live in any of its forms ever again. In times when I don’t have time to follow the press, I feel that apart from the omnipresent devastation of nature, the world is a nice place. What does the work of humanity scientist look like? When I studied, I used to work as a scientific assistant in the State Central Archive. Laptops were not very common, so I had to make notes on hard cards and left the archive after eight hours covered in dust and went straight to the shower. How much time do you personally spend in libraries and archives, in conferences and on the internet and social networks? Of course, some archives are dustier than others, that’s true. As a specialist on medieval texts, I enjoy libraries and archives. The vast majority of them are perfectly organized, with calm and charming study rooms. The Medieval codices with which I work are not dusty – on the contrary they are being taken care of because they are very rare and precious. Working with them is in a way a contemplation. If it was possible, I would spend much more time being in libraries and archives. It is uneasy to live this scientific life these days. Personal scholarly work with primary material is only one of the fields in which a scholar must be active. In order to stay competitive in Euro-American space – which is essential, especially for young scholars. Above all, the scholar must focus on teaching at the university where he or she is active as lecturer and try to gain in a competitive way financial resources for both his own research and a research which he leads, i.e. he or she must attend and organize workshops and conferences, visit important international congresses and present his or her work there, publish a number of wide ranging scholarly texts, i.e. define and consolidate one’s own position in the relevant scholarly discourse. You often comment on your success in connection with how important it is to strengthen

the position of humanistic sciences in contrast to the exact sciences, because owing to humanistic sciences we get to know something about ourselves. Why then today don’t the humanistic sciences have the same social appreciation as the exact sciences? It’s not about strengthening the position of humanistic sciences at the expense of natural science. Nevertheless, it is dangerous to make one of them an idol from which society expects solutions to their problems. For a long time, practically since the beginning of modern society in the 18th and 19th centuries until the Second World War – humanistic sciences did not have to justify their position in society. Classical humanistic education was essential for everyone who wanted to participate in leading society in any way and who wanted to proﬁt from this share in an adequate way. Scientists of humanistic spheres therefore often had a position of a sort of guru towards whom the others looked up as the holder of some secret knowledge, only accessible to the chosen ones. Even today you can meet humanistic scientists, usually male, and after a short time spent with them you feel this trend still prevails. This type is especially common at the Czech universities: a famous professor who cannot teach, despises his students and makes them think they will never become scientists – only in rare cases can they guess what the professor is thinking. That is why it’s a good thing that the humanistic sciences had to step down from an artiﬁcially created post-enlightenment pedestal after the Second World War. However, that shouldn’t lead to the other extreme: expecting the natural sciences to save the world would be equally as naïve as it would be expecting it from the humanistic sciences. In their case, though, we know that they can’t do it. In case of natural sciences we obviously have to gain the same experience. Although natural sciences can invent a cure for cancer, they won’t make society function any better. Even if the scientists manage to invent a fuel that will replace oil, the course of the Middle East, it doesn’t mean that people will live better there – although in long term horizon, it might help in a way. Pride of science is always dangerous – because it’s blind. It is necessary to pay the same attention to every human individual and to society exactly as with nature and its resources. They both have secrets we don’t know and their cognition is the key to our future. By researching texts from late the late medieval period you are, besides other things, trying to prove that shared cultural roots are connected by different nations. Is it possible that in medieval era Europe was more united than it is today? Primarily, it wasn’t Europe. People in the medieval era used to think in completely different horizons. The era which I’m concerned with, the 14th and 15th century, we can say that the regions of today’s Western and Central Europe were much more united than today as far as the intellectual and power elites were concerned. They spoke the same language, Latin and shared a common world view

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and culture, both defined by Christian guidance. They mostly handled the same education. Universities were strictly international and travelling from one to another was a daily routine for scholars, sharing common political and economic space. On the other hand, individual power centers were constantly at war with each other, the distinctions between individuals and social groups was “treated” by fire and sword, demographic, economic and ecological catastrophes were considered to be the God’s punishment and so nobody cared to resolve them. It’s simple to make the impression of unity, when you don’t really look at differences and uncomfortable problems are solved in one cut – at the height of the neck. Today’s Europe may not seem to be united but that’s only because it is much more responsible towards the individual and his rights. That is an achievement that is worth fighting for, even if it seems it doesn’t lead anywhere. In interviews with you, I’ve never found the traditional complain about lack of money in science. Is it because your case showed that “seek and you shall find” or “fortune favors the bold”? Neither. I’m not convinced that science is lacking money in the Czech Republic. Ever since we joined the European Union there is more and more money. Of course, it is still relatively less than for instance in Germany, but the question is whether the sudden increase of resources given to the Czech science up to the level of the German science would actually increase the quality. Money that goes into science is usually defectively used, if not plainly wasted. Unfortunately, state administrations are absolutely incapable of inventing and setting a system of the distribution of financial resources in science that would lead to improvement of science and university teaching. This incapability is fatal. When I was leaving abroad in the middle of the nineties, there was objectively so little money in Czech science that we are now missing a whole scientific generation. Ever since then, I have observed that there is more and more money and sometimes I’m surprised what the money is given for. Until there is a transparent and competitive organization of science in the Czech Republic, no increase of financial resources will be effective. What would you like to say at the end? The most important thing is to stay open. It’s never good to be attached to only one thought, one carrier option, one study expertise and, briefly, one imagination of the future. All slogans such as “Be yourself,” “Fulfill your dream,” and other pseudo-psychological pieces of advice so popular in television talent competitions are silly and deceiving. One is only free when he can count many options for himself in the future. Then he won’t overlook an open door that might lead him down a road that might be more interesting than anything he could have imagined and what he could have dreamt about. Linda Štucbartová ■ Translated by Markéta Horazná, AAUNI český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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ambassadors without diplomatic passport

Pavel Černoch Pavel Černoch is – from my point of view – the symbol of a typical European. Pavel was born in communist Czechoslovakia and belongs to the generation of the so-called „Husák children“, ie. kids of the baby-boom after the Soviet occupation in 1968, when disappointed Czechs and Slovaks retreated into private life. After the separation of his parents, his mother married a Yugoslav who lived in Germany and thus Pavel was allowed to legally settle with his family the West. As a consequence, he grew up on both sides of the Iron curtain and spent his summer holidays with relatives on the Adriatic coast in – back then – peaceful federal Yugoslavia. In the early nineties he finished his university studies (History, Political science and Slavonic studies) in Erlangen, his German hometown in Franconia (part of the Free State of Bavaria). During his studies he also worked for the City halls of Nuremberg and Prague and returned thereafter to the Czech Republic, in order to take part in his country’s integration process into the European Union. During the 1995–1999 period, he worked for the Delegation of the European Commission in Prague (now an information office), where he was in charge of education projects and public administration reform under the framework of preparations for Czech EU accession. As a representative of the „young generation of Europeans“, he was also active in the Czech-German discussion forum, which focused on reconciliation between the two neighbouring nations. He then taught courses and lectured on European integration at Charles University in Prague and spent a year as visiting professor in the USA (Grinnell College, Iowa). He further studied at the European University Institute in Florence and finished his PhD in international relations at Charles University in Prague. Since 2003, Černoch has lived in Brussels, first working as Director of the Czech Cultural Centre, then as press and public relations officer at the Permanent Delegation of the Czech Republic to the EU. Having successfully completed the selection process for European civil servants (EPSO concours), he joined the European Parliaments’ press service in 2007. He speaks thirteen languages, fluently.

Leaders Magazine III/2013

ambassadors without diplomatic passport How do you perceive the current EU? Are you still an optimist? For me, European integration is a question of the long-term peaceful coexistence of European nations, who share common democratic values, protect human rights and create the conditions for the free movement of their citizens and promote free enterprise. It is neither a question of optimism or pessimism, but rather a process of living together over many generations. The current EU is able to tackle a number of important issues, which it was able to address only in rudimentary fashion before the adoption of the Lisbon Treaty. One example is the creation of a common European diplomatic service, which enables member states to better promote our common interests throughout the world. When did you eventually decide to join the ranks of the so-called „eurocrats“? I knew since the early nineties, that one day I wanted to work for the European Union. I never aspired to become a „bureaucrat“ and I don‘t feel that way now, even though I have tenure as a European civil servant and belong, so-to-speak, to the furniture of the European Parliament. The European Union covers a huge area of activity and not all its workforce falls into the category of classical administration, ie. „bureaucratic“ work. Many are active in project management and/or in communication with the public. Why are European bureaurocrats so unpopular? What would you say in their defence? The word „bureaucrat“ itself is negative, I can hardly imagine anyone who would like bureaucrats. In the same way, just as some Moravian winemaker may dislike a government official „somewhere in distant Prague“, who would formulate regulations about whether he is or is not allowed to sell his wine in used-plastic bottles, so EU various citizens become angry at „those anonymous bureaucrats“ in Brussels, who require them to do things they don‘t like. The problem simply lies in the fact that an official is generally perceived in his essence as without body or soul. The dislike for European officials – and this is purely my personal opinion – has roots primarily in their „being far away in Brussels“ ie. that they mostly fail to consider specific national or regional peculiarities, but think and react more globally. Therefore they are not easily influenced by national or regional interests and (mostly) they cannot simply be ignored, bribed or kicked out. In contrast, with its elected MEPs (Members of the European Parliament) the EU has many human faces. They are, in essence, politicians and represent the well known „voice of the people“. They play an important role in formulating and adopting laws and they also defend European interests and human rights all over the world. All the varied political and national interests within the EU are reflected in their work.

Could you describe a typical daily agenda of a European civil servant? As such, a typical agenda does not exist, because the expression „European civil servant“ merely describes the fact that the individual falls under the European civil service law and, just like any judge or policeman (or in some countries even a fireman or teacher), has job security and an indexed salary. Besides that, there are also officials with temporary contracts or experts „borrowed“ from national administrations. European officials have widely varied functions and their work also differs from institution to institution, the European Commission, European Parliament, Council of Ministers, Committee of the Regions of the European Economic and Social Committee and so on. Further, there are many translators and interpreters. In general you can identify two types of officials, generalists and specialists. A specialist is a person who focuses most of his/her professional life on a certain field of interest, such as nuclear safety. Such a person is able to evaluate the related issues from the perspective of all 28 member states. These are the people you find mostly in the European Commission. A generalist is more focused on looking at issues from a global, allEuropean perspective and deals with many different topics. These people might work throughout their careers in various institutions and many also work in the Delegation offices of the EU around the world. What has the work in Brussels personally given to you? It gave me an opportunity to put my feeling of being „European“ to practical use, to saturate my curiosity of other cultures, languages and habits and make friends with people from all over the world. It also gave me a certain sense of pride in being Czech and provided me with an opportunity to represent some of the best of what our culture has to offer to other people. For example, I find it very pleasant to be among Czechs abroad, who are not in any way ashamed of coming from Bohemia or Moravia (or Silesia for that matter). This is all the more precious, because it cannot be said

of all Czech communities around the world. Brussels is an important exception in that respect. Anything else what you might want to share with our readers? Those who want to understand the European Union as it stands today, should not look to Brussels or the European institutions, but rather look outside their own door or into their own wallet. European politics and European laws now occupies the daily work of administrations in every member state of the EU. Therefore, it depends how well state administrations are able to work with the benefits emanating from EU membership. The more successfully done by the state, the more benefits of EU membership can be felt by its citizens. Equally, the EU cannot be judged by isolated regulations on the size of potatos or bananas, but must rather be seen as a long-term process of peaceful cooperation and the building of a common future in Europe. This applies specifically to our capacity as Europeans, to be able to react to the common challenges we face together as mankind. We in Europe are becoming older and are a less influential part of the planet. We are a place where, on the one hand one can live relatively well, but on the other, everyone likes to complain that it is not as good as „it once used to be“. That applies of course more to Western Europe, which witnessed an unprecedented level of prosperity since the 1960s. But curiously such feelings also exist among inhabitants of countries, which were under totalitarian rule. For example the Communist regimes provided their citizens, by targeted propaganda, with a subjective feeling of safety and security. Part of this generation (for example from former EastGermany or the former Yugoslavia) therefore still yearns for the „good old times“. We easily tend to forget ... I therefore consider the fact that to identify as a „European“ (ie. to feel, live and act as a European citizen) is not some kind of „luxury“, but an absolute necessity in the 21st century. český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Linda Štucbartová graduated from the Institute of International Territorial Studies. After a one year scholarship at the Oxford Centre for Hebrew and Jewish Studies, she obtained a Diplome d´études supérieures from the Graduate Institute of International Studies in Geneva. Between the years 2002 and 2006, she worked in senior positions at the Diplomatic Academy of the Ministry of Foreign Affairs. Since 2006 she has functioned in the private sphere, and lectures at the Anglo-American University, where she was named the Chair of the Department of Diplomacy. In addition to training in negotiation and communication of clients from the private, public and non-proﬁ t sector, she regularly collaborates with Photo: Archive NGOs in the projects of the International Global Young Leaders Conference and the Women and Leadership Programme. Linda Štucbartová is a member of the Rotary Club Prague International. She currently works for ŠKODA AUTO a.s. as a Learning and Development Specialist. Articles are extracts from her book Velvyslanci i bez diplomatického pasu (Eng. “Ambassadors without a Diplomatic Passport”).

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interview A talk with Pavel Kohout, Director of Strategy at the company Partners

Pavel Kohout (1967) – is an economist and columnist. He worked as a financial analyst for a number of companies (such as PPF and ING). In 2007, he became the co-founder of the company Partners, which operates in the field of financial consultancy. He now holds the position of the company’s Director of Strategy. He worked as a consultant and member of many professional committees, including NERV and Bezděk’s Commission. Pavel Kohout is the author of a wide range of specialist publications: “Money, Income and Risk” (1998), “Investment Strategy for the Third Millennium” (six issues, the first of 2001), “The Road to Balance” (2006), “Finance after the Crisis” (three editions, the first in 2009) and “Dramas and Farces of Economics” (2012). The new Public Procurement Act offers a lot of criticism. Do you have any idea why? The current law on public procurement shouldn’t have arisen at all. No one understands it, not even the renowned lawyers who openly admit it, and if a public institution governs according to it, it is going on a slippery slope. Moreover, the institution will be exposed to the risk of someone prosecuting them, even if they do try to follow

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all regulations. The law is vaguely written, and in some cases there is room for other possible interpretations.

actually affect anything in the Ministry of Finance. In my view, this is a way for the ministry of ﬁnance to support tax increases and gambling.

What is NERVs impact on the present government’s reforms? Has it played a positive role? The main role was primarily in popularizing some problems. And the actual impact was weaker. It was absolutely out of question for NERV to

Where were the foundations laid for the present system? The foundations of the current political system were laid in 1645, when the English Parliament army defeated the royal army. Since then Eng-

interview land has dominated parliament. And so it is in countries that have adopted some variant of the Westminster political system. In earlier times, this system could have worked quite well. But that was in the days when the government redistributed just a small percentage of GDP. Today, the state redistributes tens of percentages of GDP. The importance of the state has adequately increased. In addition, today we find that a strong and uncontrolled Parliament can operate in such a way that a rich country can be lead to the brink of bankruptcy. Is the problem specifically Czech? It is not specifically Czech. It is the fault of most political systems of Western Europe. These political systems simply originated somewhere in the 17th century. By the 19th century, public finance accounted for 8% of GDP, and today it is 50% of GDP. So we now use a political system, created for a completely different situation in completely different conditions, which is not able to meet today’s challenges. The classic Westminster political system can be very easy for populists to abuse. Likewise, so can the later European variants. What should a good political system look like? In my book I present the U.S. Constitution rewritten to our conditions. Then there is still a very brief notice on the Swiss debt brake type. The U.S. Constitution allows for far more rigorous separation of powers than the current Czech system does, and the Swiss debt brake provides much more stability for state revenues. If there is a boom, the state must hold the surplus, and if there is a crisis, the state can afford to have a budget deficit. There is even a limit for the deficit. NERV also proposed some form of a financial constitution. Yes, but the proposal was bad. It was the wrong concept, which was taken over from the EU. The European debt brake was invented by the Germans, who in finance has never invented anything well. On the contrary, they have a tradition of making major financial mistakes in critical situations. Many people will be surprised, but the Germans traditionally do not understand finance. For example, they lost the First World War not because they were strategically or technically inferior, but mainly because the French and the British, unlike the Germans, had better financial markets and were able to better finance the war. After the First World War, Germany underwent hyperinflation. When the Finance Minister, Rudolf von Havenstein, was asked by the Reich Chancellor to get money, he printed it. And he even boasted how quickly he can do it. For example, there is such a “decision hierarchy” within the Czech Financial Constitution. If the national debt reaches a certain limit, nothing happens. Yet, if it exceeds a certain limit, something has to happen, and if it exceeds another limit, something stricter has to happen, etc. The European, and Czech Constitu-

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tions respectively, are designed in principle like the emergency brake on a train. When something happens we pull the brake, and the train stops. Which of course is a bummer. And in the U.S.? The U.S. has a Financial Constitution operating not at the federal level, but rather at the level of some states, e.g. Colorado or Texas. Some readers suggested to me that I should work on the Financial Constitution of Texas. Maybe in the second edition there will be something like that, but I would rather add Switzerland there. Looking at Europe, we see that whatever country we think of, virtually all of Western Europe has problems with finances. If I wanted to write a proposal on the way the Czech political and financial system should be reformed, I simply do not find inspiration within Europe. From the Swiss I would however copy the debt brake that is the best in the world. Yet, otherwise there are objections from political scientists and lawyers that Switzerland is an inapplicable singular case. Do you agree with that? I’m not so sure. Switzerland has some unique cultural and historically contingent features that can not be applied. In addition, the Swiss Constitution has been working since 1868, which is historically a relatively short time. The U.S. Constitution has more than 200 years of history and the United States survived even the civil war. On the other hand, Switzerland has within the Federal Constitution a limit aimed at the income tax, which shall not be greater than 11.5%, and the tax on corporate income shall not be greater than 8.5%. And then, there is another provision that the individual cantons may establish their income tax rates, but they may not coordinate them with each other. Thus, there is the tax harmonization ban, while the EU unfortunately promotes the tax harmonization. Can we achieve something by changing the electoral system? This is a lesson that I learned from my time spent on various advisory boards and from other similar experiences. I had the opportunity to meet politicians from both the right and the left. Thus, I consider the candidates’ design for the Chamber of Deputies to be incorrect on principle. The voter doesn’t have a choice about what candidate to choose. To circle a preferable candidate does not work sufficiently. Although it is popular among voters, the mechanism is not strong enough to really work as intended. The best and ultimately the most traditional system is the direct election. A man throws into the box the name of a particular person that he wants. Actually, this system would work well in the Czech senate elections. Unfortunately, the Senate doesn’t have the power to balance the Chamber of Deputies. Hereby I see an option for leveling the powers of the Senate and the Chamber of Deputies, so that they are the same as in the U.S. Congress, where the House of Representa-

tives has the same amount of power as the Senate. In addition, I would keep the direct election of the President, however the President would be a Prime minister concurrently, again following the example of the U.S. presidential system, even to the extent that he would have the governmental power as well. Thus, ministers would de facto only be the government’s secretaries. They would be subordinate to the president. And then everything would work better? People behave according to the rules. When the rules are set for a pitch which has two gates, eleven players, and a ball, it is football. When those players number fifteen, and when the player can take the cone-shaped ball in his hand, then it’s rugby. Of course, rules are sometimes violated. But abuse can be policed and everyone sees it. If someone who defends the current system says that it would be sufficient to comply with the current rules, good – but the current rules are ambiguous and thus actually can not be followed as such. A wellwritten system, whether it’s an operating system on a computer, or a system comprised of people, companies, and international institutions, should work with no internal conflicts. When the computer operating system is written in such a way that there are some conflict situations arising, the system will collapse and cease to function. If there is a rule, then an opposing rule cannot be applied concurrently. Sometimes, I come across some humanities-educated individuals challenging me by saying that I am a technocrat, who intends to apply technical approaches and technical solutions to everything. And that’s apparently not possible, because human nature is inherently non-technical. However, they do not understand the main argument: I’m talking about the fact that the system should be short of internal conflicts, ambiguities and undefined situations. For example: if the Constitution provides that the nomination of an ambassador is signed by the President and representative of the government, at the same time, it should have a defined procedure on what to do when this doesn’t happen. If you ask renowned political scientists, they will tell you that it is not about the electoral system itself. With that I disagree fatally. For example, today we have 3,000 people in a company. The company is a complex system and people respond to the rules. When the rules change a bit, people respond to that, and they behave differently. Thus, it is a great art to establish such rules to make people behave optimally. Moreover, rules should be established so that people don’t attempt to circumvent the rules, and don’t try to optimize short-term revenue at the expense of longer-term strategies. So, it depends on the rules. People can be taught to respect the rules. Pavlína Holancová ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 101

ELAI conference IN COOPERATION WITH LEADERS MAGAZINE

From left: David Marek, Chief Economist, Patria Finance and ELAI lecturer, Jan Kleindienst, Chief Technology Officer, IBM Česká republika, Michal Mejstřík, Member of the NERV, Chairman of the International Chamber of Commerce Czech Republic and ELAI patron, Taťána le Moigne , Country Director, Google Czech Republic and ELAI patron, Petr Fiala, Minister of Education, Youth and Sports, Lukáš Sedláček, Director, ELAI, JinHwan Kim, President, Samsung Electronics, CZ/SK, and Zdeněk Tůma, Director, KPMG Czech Republic and ELAI lecturer

In May ELAI, in cooperation with Google Czech Republic, held a conference entitled “Education in the Era of Global Economy” with the participation of Petr Fiala, Minister of Education, Youth and Sports, Taťána le Moigne, Country Director, Google Czech Republic and ELAI patron, and Michal Mejstřík, Member of the NERV, Chairman of the International Chamber of Commerce Czech Republic and ELAI patron, as keynote speakers. The conference took place at Kaiserstejn Palace – Malostranské náměstí in Prague. The expert panelists included: JinHwan Kim, President, Samsung Electronics, CZ/SK, Jan Kleindienst, Chief Technology Officer, IBM Czech Republic, David Marek, Chief Economist, Patria Finance and ELAI lecturer, Zdeněk Tůma, KPMG Czech Republic and ELAI lecturer, Daniel Münich, Member of the NERV and CERGE-EI lecturer, Simona Weidnerová, Director of ISEA, Zdeněk Slejška, Director of EDUin, Stanislav Boledovič, Co-founder of Manageria, SK. The speakers concentrated on the upcoming amendment to the Higher Education Act and the situation of Czech higher education in a global context. With the participation of many representatives of academia, the public sector, business community, NGOs and the media, the conference contributed to the debate about the future direction of the Czech education system. To see more photographs, video-documentation or download presentations from the speakers, please visit the ELAI webpages at www.elai.cz.

From left: David Marek, Jan Kleindienst, Michal Mejstřík, Taťána le Moigne, Petr Fiala, Lukáš Sedláček

Coffee break

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Discussion with the audience

Dita Fuchsová, Director, Zdeněk Bakala Foundation on the left

From left: Barbora Petrová, Ministry of Education, Youth and Sports, Petr Fiala, Minister of Education, Youth and Sports, and Taťána le Moigne, Country Director, Google Czech Republic and ELAI patron

Lukáš Sedláček, Director, ELAI

Michal Mejstřík, Member of the NERV, Chairman of the International Chamber of Commerce Czech Republic and ELAI patron giving his keynote speech

From left: David Marek, Chief Economist, Patria Finance and ELAI lecturer, Jan Kleindienst, CTO, IBM Czech Republic, Michal Mejstřík, Member of the NERV, Chairman of the International Chamber of Commerce Czech Republic and ELAI patron, Taťána le Moigne, Country Director, Google Czech Republic and ELAI patron, and Petr Fiala, Minister of Education, Youth and Sports

Michal Mejstřík, Member of the NERV, Chairman of the International Chamber of Commerce Czech Republic and ELAI patron and Taťána le Moigne, Country Director, Google Czech Republic and ELAI patron

Petr Fiala, Minister of Education, Youth and Sports

103 From left: Petr Fiala, Minister of Education, Youth and Sports, Lukáš Sedláček, Director, ELAI, and JinHwan Kim, President, Samsung Electronics, CZ/SK

From left: Petr Fiala, Minister of Education, Youth and Sports and Lukáš Sedláček, Director, ELAI

charity event

From left: Mgr. Kamila Kryštofová, Director, Endowment Fund of Livia and Václav Klaus, prof. Ing. Václav Klaus, former President of the CR, and Ing. Livia Klausová, CSc., Chairwoman of the Board of Directors, Endowment Fund of Livia and Václav Klaus

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At the end of May, the founders of the endowment fund of Livia and Václav Klaus met for the tenth time with their donors and volunteers, in Rožmberk palace at Prague Castle. Aside from the official part, the programme also included a musical performance of the Apollon quartet and Cimballica ensemble.

Mr. and Mrs. Sodoma

Mr. Jaroslav Rais and Mgr. Jaroslava Raisová, HR Director, ČKD GROUP

104 From left: Benke Aikell, your Publisher and prof. Ing. Václav Klaus, former President of the CR

From left: Eva Kvasničková, Committee of Good Will – The Olga Havel Foundation and MUDr. Milena Černá, Director, Committee of Good Will – The Olga Havel Foundation

charity event

Mrs. Jarmila Fučíková and Mr. Lee Barfield

Awarding participants of the project “Seniors communicate”

From left: Mr. Sodoma, Ing. Livia Klausová, CSc., Chairwoman of the Board of Directors, Endowment Fund of Livia and Václav Klaus, and prof. Ing. Václav Klaus, former President of the CR

From left: Ing. Tomáš Doležal, Tiskárny Hořovice and Petr Ženíšek, Director, Tiskárny Hořovice

Josef Dlask, Key Account Manager, North Bohemia, ČEZ Prodej with his wife

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From left: JUDr. Ladislav Petrásek, CEO and Member of the Board of Directors, Endowment Fund of Livia and Václav Klaus, Ing. Livia Klausová, CSc., Chairwoman of the Board of Directors, Endowment Fund of Livia and Václav Klaus, and prof. Ing. Václav Klaus, former President of the CR

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charity event

From left: Mrs. Jana Pourová, Ing. Livia Klausová, CSc., Chairwoman of the Board of Directors, Endowment Fund of Livia and Václav Klaus, Mr. Pavel Beránek, and Mrs. Jitka Pečicová

Cimballica – much acclaimed performance

From left: Mgr. Eva Kadlec Dědochová, Marketing Manager, CarTec Group with her husband, and prof. Ing. Václav Klaus, former President of the CR

106 From right: JUDr. Ladislav Petrásek, CEO and Member of the Board of Directors, Endowment Fund of Livia and Václav Klaus and prof. Ing. Václav Klaus, former President of the CR

Quartet Apollon receiving acknowledgment from the audience and from prof. Ing. Václav Klaus, former President of the CR

spring security conference IN COOPERATION WITH LEADERS MAGAZINE

On Monday, May 20, 2013 the Chamber of Deputies of the Czech Parliament hosted the international conference Risky Future for Europe and the Czech Republic: Are We Prepared? The conference was organized by the Center for Security Policy, CESES FSV UK. The key security threats and challenges of our days were addressed, as the conference also responded to the US National Intelligence Council Report Global Trends 2030: Alternative Worlds. Leading Czech and foreign experts participated at the conference. The conference took place under the auspices of the Vice Chairman of the Chamber of Deputies Lubomír Zaorálek and Minister of Industry and Trade Martin Kuba.

Col. Marc de Fritsch, Deputy Director of the Department of Defence Planning and Policy, Directorate of Strategic Affairs of the Ministry of Defence of France

From left: H.E. Cihad Erginay, Ambassador of Turkey, H.E. Alison Kelly, Ambassador of Ireland, and H.E. Lembit Uibo, Ambassador of Estonia

107 From left: LtG. Petr Pavel, Chief of the General Staff of Armed Forces of the Czech Republic and Miloš Balabán, Head of the Center for Security Policy, CESES FSS Charles University

From left: Štefan Füle, European Commissioner for Enlargement and European Neighbourhood Policy and Miloš Balabán, Head of the Center for Security Policy, CESES FSS Charles University

spring security conference

From left: H.E. Alison Kelly, Ambassador of Ireland and Leonie Liemich, Representative, FriedrichEbert-Stiftung in the Czech and Slovak Republic

Col. Marc de Fritsch, Deputy Director of the Department of Defence Planning and Policy, Directorate of Strategic Affairs of the Ministry of Defence of France

Miroslav Bárta, Czech Institute of Egyptology, Faculty of Philosophy and Arts, Charles University and MG. Karl Engelbrektsson, National Representative of Sweden in the EU Military Committee

From left: Lubomír Zaorálek, Vice Chairman, Parliament of the CR and Miloš Balabán, Head of the Center for Security Policy, CESES FSS Charles University

From left: Andor Šándor, Security Advisor and Antonín Rašek, Center for Security Policy, CESES FSS Charles University

Jan Klas, Advisor to the Prime Minister for Internal Security

108 William Whitney Burke-White, Deputy Dean, University of Pennsylvania Law School

From left: LtCol. Per Råstedt, Defence Attaché of Sweden, Benke Aikell, your Publisher, and MG. Karl Engelbrektsson, National Representative of Sweden in the EU Military Committee

Monika John-Koch, Federal Office of Civil Protection and Disaster Relief, Germany and Col. Drahoslav Ryba, General Director, Fire Rescue Service of the CR

Vladimír Tošovský, Chairman of the Board of Directors, ČEPS, a.s.

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From left: Pavel Cyrani, Director, Division of Strategy, ČEZ, a.s. and Tomáš Přibyl, General Director and Chairman of the Board, Corpus Solutions

From left: Jindřich Kolek, Secretary, Faculty of Social Sciences, Charles University, Mirka Kortusová, Center for Security Policy, CESES FSS Charles University, and Simeon Hinov, IBM Czech Republic

From left: BG. Miloš Svoboda, Deputy Director of Fire and Rescue Service of the CR, in the foreground Col. Rostislav Richter, Director, Population Protection Institute, Directorate-General, Fire Rescue Service of the CR, and Col. Jarmil Valášek, Population Protection Institute, Directorate-General, Fire Rescue Service of the CR

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global perspectives

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

global perspectives In our knowledge economy, the skilled workforce – the talent – is the competitive advantage of a company, an industry, and the economy as a whole. The talent performs the knowledge-intensive activities that make an economy competitive and contribute to the quality, volume and pace of technical and scientific advance. Does Europe have enough talent supply to remain competitive in the future? As the increasing demand and decreasing supply for talent are burdening Europe’s recovery, the war for talent in Europe and around the world is intensifying. The shrinking labour force due to the aging population in Europe is only part of our problem. The core issue lays with how prepared our European youth are to meet the available jobs in our knowledge economy, and how many are prepared to learn and develop their skills throughout life. How many students graduate with basic programming, analytical and problem solving skills? How about soft skills such as communication skills, multiple languages, and cultural sensibility? Is higher education in Europe teaching our upcoming talent creativity, adaptability and risk awareness? How is Europe encouraging lifelong learning and development of our talent throughout all stages of education and life? The bottom line is that countries with a higher rate of regular and frequent computer or internet users tend to have a higher supply of medium and high-skilled talent. According to the EU Digital Agenda Scoreboard 2012, 27% of Europeans have high level computer skills. At the same time, only 53% of the labour force said is confident that their level of computer and/or internet skills are sufficient if they were to look for a job or change their job within a year. These figures have not changed significantly over the past 2 years, increasing by only a few percentage points. Teaching more computer science in schools would be part of the solution. The other part would be teaching them to have a constant learning mentality. The knowledge economy and lifelong learners Lifelong, lifewide learning emphasizes the ongoing pursuit of knowledge for both personal and professional reasons. Learning starts at childhood, and should not slow down or end after formal education is completed. In today’s knowledge economy, learning can no longer be divided into a place and time to acquire knowledge – the classroom – and a place and time to apply the knowledge acquired – the workplace. A thriving knowledge economy is preconditioned on a successful learning economy. Lifelong learning enhances competition and employability as well as social inclusion, active citizenship and personal development. We can guide children to become lifelong learners from kindergarten, throughout primary and secondary school, beyond higher education and into retirement. This will ensure that a large portion of our workforce will remain competitive for longer and while Europe will have an increasing demand for talent, the competition for that talent will not turn into a war. Lifelong learners from kindergarten Indeed, kindergarten is not too early to instil a mind-set for lifelong learning. For example in Denmark, the much talked about International

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School of Billund plans on steering its young students (3 to 7 years of age) to become lifelong learners by offering a unique curriculum. The school – popularly called the Lego School – will combine an International Baccalaureate program with the Danish state education requirements, and the creativity of Lego play. The school’s mission according to its website is to “guide and stimulate children to become ambitious lifelong learners who achieve personal fulfilment and who will make positive contributions to our ever-changing world.” The school will have bike routes, playgrounds, a hexagonal music studio, and a “Lego Lab.” Since the school is the project of Lego owner Kjeld Kirk Kristiansen who is also the Chairman of the Lego Foundation, an organisation funding research into child development and the psychology of play, the amount of Lego the young students will have at their disposal will not be a problem. The school’s mission of promoting lifelong learning relies on making Lego games synonymous with learning. Lego seems to be used by the school as a tool for learning many things, as well as promoting the learning process itself. Beyond the fun factor for younger children, the Lego building blocks as interlocking combinations provide hours of patterning practice and fine-motor development. According to research done by the Lego Foundation, looking for just the right piece strengthens sorting skills, a key part of the kindergarten math curriculum. Lego also teaches how to think and build something in three dimensions – a precursor of physics and engineering. Through Lego play, children of all ages also hone creativity, problem-solving, and teamwork. Learning how to learn Finland’s educational system also guides students to become lifelong learners by preparing children to learn how to learn, as opposed to learning how to take a test. The transformation of the Finns’ education system began some 40 years ago as the key propellant of the country’s economic recovery plan. Educators in Finland received confirmation of how successful their education system is in 2000, when the first results from the Programme for International Student Assessment (PISA), a standardized test given to 15-year-olds in more than 40 global venues, revealed Finnish youth to be the best young readers in the world. Three years later, they led in math. By 2006, Finland was first out of 57 countries in science. In the 2009 PISA scores, the nation came in 2nd in science, 3rd in reading and 6th in math among nearly half a million students worldwide. The success in the statistics is due to the human factor. Everyone in the educational system abides by the philosophy that any Finnish child should get the same quality education. The differences between weakest and strongest students are the smallest in the world, according to a recent survey by the Organization for Economic Co-operation and Development (OECD). A reason for this is that students are taught how to learn and acquire knowledge – then students are empowered to acquire any knowledge they seek to learn. Educators are focused on how each student learns, and the success has shown up in the tests themselves. Employer and school-based learning Germany’s Dual System of vocational educa-

tion and training (VET) has been a major factor in Germany’s economic success and reinvention over the past six decades – and has also set students on a track for lifelong learning. The dual system receives its name from the combination of employer-based and school-based training, which is typical of the traditional apprenticeship pattern in Germany. Students can participate in an apprenticeship with a company or organization and receive workbased training 3 days a week, and for the remaining days they attend school. Or, they can choose full-time apprenticeship with intermittent ‘blocks’ of school-based training. Students can usually have an apprenticeship that lasts between 3 and 3 ½ years. Successful completion of the apprenticeship leads to skilled worker status or, in the crafts, to journeyman status. The apprenticeships are recognized nationally and they are based on curriculum and exams determined by the training regulations issued by the German Federal Ministry for Economic Affairs. The key to lifelong learning is that learning happens in different ways and settings. The dual VET system encourages people to combine different ways of learning, in this case practical and formal learning in different settings at work and at school. Furthermore, after students graduate school, they also ‘graduate’ the first level of professional experience. As they move on in the next stage of their career they are already used to incorporating different sources of learning. Lifelong learning embedded across Europe’s policy frameworks Flexicurity is a welfare state model with a proactive labour market policy. Flexicurity – a term first coined by the Prime Minister of Denmark Poul Nyrup Rasmussen in the 1990s – refers to the combination of 2 important factors of a competitive economy: labour market flexibility and security for workers. However, flexicurity is not just about flexibility and security but it also recognizes the importance of continuous development of workers for the success of the economy as well as self-fulfilment of the workers. Indeed, for the Government of Denmark and the European Commission, flexicurity is implementable across policy components like flexible and reliable contractual arrangements for workers, modern social security systems providing adequate income support during employment transitions, effective and active labour market policies, but also comprehensive lifelong learning strategies. A valuable contributor in any economy can be an expert at many things. However, the experts of today are not just that, but they are ‘learning’ experts. In order to maintain any expertise, our workers need to remain students their entire lives. In order to fill the technology jobs in Europe, and to keep our economy competitive we need to train our youth to learn how to learn, and to continuously widen their knowledge – this way, our knowledge economy can keep expanding while the new age of global war for talent won’t reach crisis proportions in Europe. By Jan Mühlfeit Chairman Microsoft Europe ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

Leaders Magazine III/2013 111

best of event

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Legendary olympic medalist Věra Čáslavská with the host Michaela Lejsková presenting all her eleven olympic medals from Mexico City, Rome and Tokio

Kateřina Neumannová, Olympic medalist, Cross – country skiing and Petr Vichnar, renowned Sports Moderator

112 Pavel Kohout, Member of NERV and Chairman of the Board, Partner investment company with a portrait from a famous photographer Robert Vano

From left: Renata Drössler, Jazz Singer, Jovanka Vojtková, Dancer, and Michaela Lejsková , Editor in Chief, Best of magazine

Lenka Helena Koenigsmark, Head of Editorial, Leaders Magazien and Benke Aikell, your Publisher

From left: Mrs. Ivona Novotná, Michaela Lejsková, Editor in Chief, Best of magazine, Mrs. Eva Vašková, and Mrs. Helena Plívová

From left: legendary ice hockey goalkeepers Jiří Holeček and Dominik Hašek with Petr Vichnar, Sports Moderator

FIND MORE ON WWW.IBESTOF.CZ

From left: MUDr. Josef Syka, DrSc., Professor, Medical Faculty of Charles University, Prof. MUDr. Eva Syková, DrSc., FMCA, Senator, Michaela Lejsková, Editor in Chief, Best of magazine, and Jadran Šetlík, Photographer

From left: Renata Drössler, Jazz Singer, Mrs. Irena Pluháčková, and Marcela Březinová, Singer

Petr Vichnar, Sports Moderator awarded by olympic medalists with Jaroslav Mejta, Owner, Mejta Zlín

From left: Michaela Lejsková, Editor in Chief, Best of magazine with Petr Vichnar, Sports Moderator and Olympic medalists Petr Koukal, Štěpánka Hilgertová, Věra Čáslavská, Václav Chalupa, Oldřich Svojanovský, Pavel Svojanovský, Jaroslav Volf, Dominik Hašek, Ondřej Štěpánek, Lenka Šmídová, Mirka Knapková and Jan Klapáč

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Presented by: MIRO Gallery Prague and the Trebbia Foundation in cooperation with the Prague International Marathon (PIM) and Strahov Monastic Brewery.

events Prague Swingers were playing to keep a cheerful mood

Miroton 2013 was started by Juraj Jakubisko, Film Director and his wife Deana Jakubisková

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From left: Ing. Jaromír Schling, former Minister of Transport of the CR and Ing. Radomír Šimek, former President, German-Czech Chamber of Commerce

From left: Jiří Wallenfels, time 11:12, Pavel Kubričan, time 10:58, and Jaroslav Bárta, time 12:12

Šárka Nespěchalová, AGEL a.s. reaches the finish

Volodymyr Pohoyda, Director, Unicorn Systems, Kiev with his wife Tatiana

From left: Juraj Jakubisko, Film Director, Deana Jakubisková, J & J Jakubisko Film s.r.o., Miro Smolák, Founder and Main Organizer of Miroton and Director of MIRO Gallery Prague, and Mgr. Vladimír Drábek, Representative of Prague International Marathon

From left: Karla Mališová, time 14:29, Lenka Šibravová, time 13:05, and Katarína Třísková, time 15:21 From left: Roman Šmucler, Asklepion, Clinic and Institute of Aesthetic Medicine and Ján Lešták, Owner, Eye Clinic JL

114 Bob Pastorok, Musician, Seattle, USA, Mark Smolák, Music Teacher, Moderator, and Josef Gáfrik, Journalist

Natali Ruden, Fashion Designer with the winners of men’s category of Miroton 2013

analysis

INTERCULTURAL COMMUNICATION Martin Opatrný is a Communication expert and advisor on Media and Crisis Communication. He gained his present experience both in the private sector and in civil service. Before his previous engagement, as spokesperson and advisor for the Prague City Hall Opencard project, Martin worked at Interel – the European strategic communications group that offers an integrated approach to top level public relations and affairs, as well as association management. He also worked as press secretary and spokesperson for the President of the Chamber of Deputies of the Czech Parliament. He obtained most of his professional experience and skills in the Public Relations Department of the Ministry for Regional Development, where he worked as acting departmental head, spokesperson and the Editor-in-Chief for their official website. Martin further acquired practical work skills as a journalist for Czech Television, a PR agent at a private PR agency and a professional freelance writer. He now teaches Media and Crisis Communication at Charles University in Prague, conducts courses and trainings in communication and gives freelance advice covering his field of expertise. Martin graduated from the Philosophical Faculty of the Charles University in Prague, where he obtained his PhDr. degree in cultural studies, with a specialization in mass communication and psychology. He had also studied management and marketing. You can find more on: http://cz.linkedin.com/in/martinopatrny and reach him at: martin.op@centrum.cz. We are different. This is not only the name of a famous song, but the clear truth, especially within the European family. 27 member-states form one group, despite their own national characteristics. Even though the EU spends great expense on interpretation, understanding is not guaranteed. The reasons why are cultural differences and the variety of communication styles. There are two main cultural communication types worldwide. The ﬁrst of them, called “multiactive”, solves many issues at one time. The other, “linear-active”, focuses on one issue after another. While communicating, this means the ﬁrst group is prepared to talk over several issues at one time, while the second naturally prefers to discuss a single subject and, only after it is complete, move on to another the topic. Within the EU, both groups are represented more or less equally, with a slight predominance toward the multi-active. This ratio has mainly been changed by the last EU extension, thanks to multi-active Balkan countries. Until that time, linear-active communication essentially prevailed. Both groups must in fact communicate with each other often. Within plenary sessions and many other meetings, the topic is generally clear in advance. Many interpreters are present as well. Regardless, some misunderstandings can appear without an identical option connecting the participating sides. There are not only differences in styles of communication. Many countries worldwide have their own favored topics of conversation. Englishmen are better experts on weather than many meteorologists, southern Europeans talk enthusiastically about their families, Flemings slander Walloons and vice versa. On the other hand, taboos exist in conversational matters as well. The Portuguese cannot bear comparison to Spaniards, do not mistakenly praise the Turks in Greece, workaholic Japanese never mention their feelings at all and we Czechs always complain about everything. By Martin Opatrný ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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Leaders Magazine III/2013 115

casa serena

The Casa Serena That I Know Back in 2001, Maureen Chang took on a chateau renovation and golf course project, with the vision of making it a unique connecting point for multinational companies and their business needs. The mission was to create an environment where privacy and a relaxing venue would allow the enterprises to conceive their business strategies along with corporate partners, while preserving the historical values of the Czech Republic. This was a tall order and even I was quite skeptical about the mission which she promised to

Maureen with Casa Serena partner Terry Gou

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Leaders Magazine III/2013

Serena Gou, the late wife of the initial investor, Terry Gou. The partnership between the Gou’s and Maureen began its impossible journey in 2002. I remained skeptical when I saw the condition of the old Chateau Roztěž as I could not envision what it might look like after renovation. The project had been kept in a very low profile manner because it was a private investment and will remain a private venue. Being ignorant of the complexities of the renovation requirements, I thought renovation meant fixing the doors and windows, new paint, and perhaps adding some heating needs. The fact is that Maureen has consumed herself in this project for over ten longand-hard years. As a foreigner who didn’t speak the local Czech language, no European history background, no architectural or construction knowledge and zero experience with permit requirements and processes, this journey seemed like a punishing nightmare. She began her work in a rented office in a very small village, which had been an agriculture administrative building near hundreds of cows evidenced by the cow flies that snuck into her car as she would drive 80 kilometers late at night back home to Prague everyday for over 5 years. Finally, she was able to renovate a small house adjacent to the Chateau which became her office and sleeping quarters as she had to work late almost every night, seven days a week.

We all have experienced some construction work, either directly or indirectly, and seen the numerous difficulties. In my view, her harsh experiences, at minimum, were 100 times more. Without speaking Czech, it was twice as hard, having a six-hour meeting with contractors and engineers for a simple “yes” or “no” answer. At the end of the meeting, her interpreter would tell her, “They did not answer “. To say that it was a frustration is an understatement. Yet, the project continued. At the same time, I was fighting my own battle to establish our first large-scale European operations in the Czech Republic, and subsequently expanding it to many parts of Pan-Europe. Although I had thousands of employees, our administration did not provide Maureen with any meaningful help, even being harmful to her kind heart and generous nature of trying to be a mentor to them. In fact, any attempts actually created more problems for her to resolve. In many ways, she was alone. What kept her going was pure determination to honor her promise to her friend, Serena, and an “acquired” passion to make this seemingly impossible project a success. After thousands of permits, years of 24/7 study of European history, architecture, interior design, construction, etc., and tons of frustration, the construction part finally took shape in May 2007. The faded historic property was transformed – with all of its’ highly detailed interior restored with matching furniture – into an entirely furnished Chateau in its proper historical style, yet with modern comfort. Around the same time, she began purchasing 250 parcels of private land for the construction of a Championship 18-hole golf course, assisted with gracious help by European Golf Design (EGD), a leading design company in the industry. Starting in 2006, she went to the construction site daily for nearly two years, whether it was summer or winter with heavy snow, and basically lived onsite. Ultimately, she sacrificed what was a tenyear hard and punishing experience from the best years of her life. In the Autumn of 2007, she finally unveiled the project and hosted a private opening of the propJim Chang of the Prague Freedom Foundation, has lived in the Czech Republic for more than 12 years. Previously, Jim had been Managing Director for Foxconn, overseeing European Operations. Jim was born in China and raised in Taiwan. After graduation from university, he went to California to pursue further studies and continue his professional life, residing in the States for some 30 years. He has also lived and worked in Asia and Europe, and still has not decided where to retire. Jim “retired” from golf a couple of years ago, reluctantly, based on doctors’ orders due to a back problem. He still appears at clubhouses on occasion in order to stay connected with golf in some capacity. Rumor has it that Jim will return to the U.S. someday when he is ready for retirement.

casa interview serena

from left Maureen Chang, Martin Říman, Mirek Topolánek, Terry Gou, Ivo Šalátek

House reconstruction

erty which had been transformed into an unbelievable venue. And on December 19th of 2007, a memorial dinner was held in honor of the late Serena Lin at Casa Serena, as Maureen and other guests honored her friend and partner, on what was Serena’s birthday. One of her honored guests was the President of the Czech Journalist Association, Miroslav Jelínek – the organization from which Chateau Roztěž was purchased from in 2002 – and he remarked that Maureen had restored the dignity to the historic property. This was a deﬁning moment for the skeptics to realize the magnitude of what Maureen had accomplished. Through her painstaking efforts and perseverance, Maureen had become the sophisticated creator of Casa Serena. However, immediately thereafter, she had thrown herself into another phase of her promised work – creating and building the Casa Serena brand of by hosting a European PGA Senior Tournament – the 2008 Casa Serena Open. She started building a golf house (not a clubhouse

Music room at Chateau Roztěž

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since there was no club membership) and during the summer of 2007 it was completed just one week before the inaugural Casa Serena Open, with splendid views of the beautiful landscape. Her determination and will deﬁed all odds, making what seemed to be an impossibility possible. Witnessing the end result at Casa Serena and the enjoyment that it brings to both the visitors at Chateau Roztěž and the Casa Serena Golf Course seems like something out of a fairy tale. Few could ever imagine everything that went into this wonderful accomplishment of Maureen Chang. Not only did she deliver on her promise in its physical terms, but also her intended purpose of creating a unique business connecting point, proved to be a great success. As head of a multinational company in Europe, I actually used this venue as my European Headquarters, successfully launching other operations throughout the continent. Most critical business breakthroughs were accomplished at the Chateau Roztěž and on the Casa Serena Golf Course.

Maureen had provided me with a great platform for conceiving my business strategy, engaging in the most crucial of business negotiations and networking with various business partners. I have noticed that her other clients belonging to the Casa Serena Access Program have also experienced the same effects. Both my company and I owe her immensely for our own successes, which benefited greatly from this unique venue, and it is my pleasure to share this story with all of you. This historical beauty that is Casa Serena reflects how one person, Maureen, made an incredible difference. Maureen is a believer that if someone wants something badly enough, one will attain it even if they are up against all odds. Hard work, firm selfbelief and dedicated passion led her to accomplish what she wanted to achieve. For all Casa Serena visitors – you will be amazed by this great business venue, while also having the chance to get a glimpse into Maureen’s heart and soul. By Jim Chang ■

Bedroom suite at Chateau Roztěž

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golf

Senior Tour Pro Ian Woosnam succesfully playing out of the thick Casa Serena rough

Deloitte returned to Casa Serena, June 2013

Corporate Access to Casa Serena Casa Serena is ideally situated in the tranquil and unspoiled Czech countryside near the historic UNESCO World Heritage city of Kutnรก Hora. Previously accessible by invitation only, the spectacular venue has opened its doors to companies and individuals who wish to host golf corporate days at this most private of venues.

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Come to play golf, leave with business.

Huawei visit at Casa Serena, August 2012

We invite our partners to join us for this worthy event benefiting those in the community with disadvantages. Through our efforts and cooperation, we hope to provide a better tomorrow for all.

interview

An interview with Jiří Běhounek, the Governor of the Highlands Region

VYSOČINA A Different Kind of Region The Highlands (Vysočina) region is an area bordering Bohemia and Moravia and home to more than a half-million people. Its advantages are a clean environment, as well as a strategic position within the Czech Republic and easy access to the D1 highway. The leadership of the Highlands region doesn’t rigidly follow conservative forms of management. Among the first of the Czech regions to successfully experiment with purchasing energies through electronic auction, it was the first so-called healthy region, supporting sustainable development and, over the long term, led in introducing new information technologies. Since 2008, Jiří Běhounek (* 1952) has been Governor of the Highlands region. He’s also the Chairman of the Committee of the Regional Council for Southeast Regional Cohesion and Vice President of the Association of Regions of the Czech Republic. But beyond that, he remains a doctor; a renowned and sought-after orthopedist. He’s married and has two children.

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interview You were behind the foundation of the Association of Regional Hospitals of the Czech Republic. How did the Association influence the negotiation position of regional healthcare facilities with their key partners? We live in times of constant legislative change. We must be particularly aware of the so-called “add-ons” these laws require. Additionally, nowadays regional hospitals have no chance to influence things as individual units. Even to comment upon something requires participating in dozens of official and informal negotiations, all intending to promote their interests. Since 2010, nearly all regional hospitals are newly represented as a single partner that lobbies and represents their interests to insurance companies and the Ministry of Health care. The hand of the Association of Regional Hospitals is apparent in negotiating conditions for payment regulations or setting criteria for the optimization of hospital bed resources. Currently the association represents hospitals covering nearly half of all recorded health-care practice. Regional health care and, actually health care in the entire Czech Republic, is undergoing the difficult process of searching for an optimal functional model. How does a healthy hospital look in your view? A healthy hospital is composed of competent, motivated and loyal employees, able and responsible management and above all, satisfied clients – their patients. I hold in equal importance keeping up with modern medical procedures. That logically presents a need for regular equipment upgrades and the corresponding inflow of investments and subsidies. Another positive evaluation of hospitals includes the acquisition and maintaining of accreditation, which is a natural tool to increase the quality of care. Finally, a healthy hospital is one that never gives up the endless and almost Don Quixote-like fight against the windmills of legislation, European standards and occasional prejudice. Is this why you came up with the Safe Hospital project? Currently, the Safe Hospital competition is a joint project among the Highlands Region, the Joint Accreditation Committee of the Czech Republic, Johnson & Johnson, s. r. o., Projekt HOPE – Česká republika, o. p. s. and the Czech Association of Nurses. The goal of the competition is to showcase examples of good practice that leads to increased inpatient safety and promotes hospitals that ventured furthest in increasing that safety. I believe that the Safe Hospital competition has contributed to fundamental improvements in Czech hospitals, including their maintenance and control of health-care documentation, identification of patients and registration of drugs, including their safeguard. And there is far more that shared examples of good practices can bring to Czech health services.

Regional health care is a very specific area of public service. I would compare it with a hurdle race. If you begin thoughtlessly and too early, you may be disqualified. A badly chosen tactic in jumping those hurdles may finally result in enormous delay and coming late to the finish line. In health care, you must occasionally win over everything, because participation in the race is simply no longer enough. Of course, understanding the health-care environment is an obvious advantage, but one shouldn’t develop professionallyrelated blind spots. Is there any news regarding the Highlands region and the hospitals it establishes? It’s true that who one who makes no mistakes, makes nothing. We are now testing a videoconference system in five regional hospitals and the Emergency Health Service of the Highlands region. Health-care facilities need to communicate together and are also connected to various joint projects. We hope the new communication channels will decrease travel costs and save time. The investment in videoconferencing should return in seven and a half years. Additionally, we count on the fact that videoconferencing will serve to com-

municate with other hospitals across the country, including monitoring selected operations. Our original system for scheduling patients is finding success across five regional hospitals. Patients have the option to choose their time of treatment and doctor, as well as their hospital. The timesaving reservation system is available 24 hours a day. As Governor of the Highlands region and still active as a doctor, do you still find time for hobbies? I enjoy sports in my free time. When I had more time, I played tennis and volleyball. Currently I’m a fan of regional football and hockey. This winter, thanks to the World Biathlon Championship in Nové Město na Moravě, I enlarged my group of favorite sports. I had the unique opportunity to be in the middle of these events, see the maximum effort and enjoy those moments of victory with the athletes. I’m glad that the world’s largest biathlon event in 2013 took place here in the Highlands. Compiled by LM ■ český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

When it comes to managing health care in the region, do you feel that its environmental sensitivity is an advantage?

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diplomatic event

H.E. Sergey B. Kiselev, Ambassador of the Russian Federation and Alena Gajdůšková, 1st Vice Chairwoman, Senate PCR

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H.E. Sergey B. Kiselev, Ambassador of the Russian Federation and Mrs. Livie Klausová

From left: Vladimír Laštůvka,Consultant and former MP and Marcus S. Ellenbogen, President, Prague Society

122 From left: Vojtěch Filip, Chairman, KSČM, and Ju Won Chol, First Secretary, Embassy of the Democratic Peoples Republic of Korea

From left: Karel Muzikář, President, Comenius, H.E. Tagir Taghizadeh, Ambassador of the Republic of Azerbaijan, and Vojtěch Filip, Chairman, KSČM

diplomatic event

From left: Jonathan Cook, Defense Liaison Officer, U.S. Defense Attace Office, Prague, Embassy of the USA, and Per Rastedt, Defence Attaché, Embassy of Sweden, Prague with his wife

Kenichi Kimiya, Councellor, Embassy of Japan with his wife Eugeny N. Rodin, Head of Representative office in the CR, Atomstroyexport and his wife

Petr Skokan, Deputy, Chamber of Deputies and Ing. Jana Bobošíková, Chairwoman, Suverenita

Anatoly Tomnikov, First Secretary, Embassy of the Russian Federation in the CR with his wife

From left: Jaroslav Bašta, former Czech Ambassador to the Russian Federation, Edvard Outrata, President, European Movement in the Czech Republic, and Zdeněk Zbořil, Advisor, Art Agency Monte Christo

Robert Prokop, CEO, URC Systems and Kateřina Smrčenská, Sales Director, URC Systems

From left: JUDr. František Mikeš, 1st Deputy Minister of Culture, Mr. Radim Fiala, and Kristýna Kočí, Member of the Parliament, PCR

RNDr. Jiří Hynek, President, AOBP with his wife

From left: Vladimír Lobkowicz, MBA, First Secretary, The Embassy of the Sovereign Military Order of St. John of Jerusalem of Rhodes and of Malta with his wife and H.E. Frane Krnić, Ambassador of Croatia

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Oleg Alborov, Chairman, KCPC with his wife

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infrastructure analysis

AND AGAIN RECESSION…

In the 1st quarter of 2013, the Czech economy registered according to preliminary estimates a decrease of the gross domestic product (GDP) by 1.9%, on a year-on-year, and by 0.8%, on a quarter-on-quarter basis. The numbers can hardly improve much by further rectifications, and this means that the economy has been in continuing recession for a year and a half; which is the longest recession in the country’s history. The economic crisis, although imported at the beginning first from USA and then from the eurozone into conditions of a very open and export-oriented national economy, seems more and more to have also strong domestic roots. Otherwise it would be hard to explain, in spite of responsible monetary policy, stable banking sector, growing productivity of labour and low public debt, a development that is more alike to the “South European Wing” than to neighbouring countries. One of purely domestic agents was undoubtedly radical public investment expense restriction imposed by Czech Ministry of Finance. It looks from the perspective of a rear-view mirror as one-sided and exaggerated. One can applause that the public budgets’ deficit got at the end of 2012 near to prescribed 3% of GDP, but also must pose the question at what expense it occurred. It

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is only a matter for impartial financial computations whether savings in debt service outweigh their overall strangling influence on the economy and – consequently – on tax revenue. It can be presumed that a more moderate pace of expense cutting would do better. The induced halt in infrastructure investment led to a real disaster in construction industry: its performance has fallen, according to preliminary estimates, in March 2013 by 20.6% on a year-on-year basis, already after previous decrease. Not all of this result may by far be attributed to atypically long winter weather. Another factor can be seen in overdue economic reforms that, postponed in the time of the boom in the Czech economy, naturally coincided with the economic crisis. It may be perceived as a merit of the incumbent Mr. Nečas’s Government that it agreed and finished the protracted reform of rental housing, materialized property settlement with churches and at least tried to introduce, literally five minutes after twelve, a vitally important reform of pensions. On the other hand, restrictive effect of reforms naturally added to the economic downturn. Czechia belongs, according to World Bank’s Doing Business reports, to European countries with less favourable environment for business. The country’s total rank was 65th out of 185 surveyed world countries in 2012. In regional terms, it lagged behind Slovakia, Hungary or Poland and was followed only by Bulgaria, Romania, Italy and Greece. The most serious drawbacks could be found in bureaucracy complicating starting a business (140th world rank) and paying taxes (120th world rank) with even slightly deteriorating level over time. In the category of extent of time spent by preparing a tax return, Czechia had the worst position under OECD countries, even behind the average of Latin America. This burdens in particular the sector of small and medium enterprises that is at the same time stricken by decreasing demand and worsening payment conditions. In one of preceding articles it was stated that the former restrictive policy may even work for a more healthy growth in the future provided there is sufficient demand for Czech exports. But this is just what does not show at the moment; on the contrary, after three years of growth Czech exports dropped and are no longer an outweighing factor to insufficient domestic demand. This affected also the main Czech export specialization, which is automotive industry. It is necessary to admit that the crisis the Czech economy has got into cannot be explained in economic terms only. It can be described as a politi-

cal and credibility crisis as well. It is no secret that political sector is, irrespectively of political parties and their programmes, dominated by a large group of persons that stood in the head of the economic transition and EU accession during last twenty years and whose capacities to lead are exhausted, and sometimes also compromised by unpleasant scandals. This evokes distrust of the population in the government, and thus also low understanding of the sometimes problematic reform steps. A call for new and better politicians is ubiquitous. The economic effect of this public mood is simple: less spending and more savings in the expectation of more bad news to come. If we have such – and not complete – list of agents determining the existing level of recession in Czechia, the main question can sound what possibilities are available for an escape from the depression. They exist, but they are limited by nature, and also by the term of the Government in power. The interest rate has no space to sink for boosting the economy. The exchange rate can help, but only to a degree. And the expectation that the demand for Czech exports will dramatically improve is also unrealistic – USA is only to pay its price for „quantitative easing“, as well as the eurozone for curing more symptoms than causes of the problems in the South. Now it is time for some pro-growth measures, as Minister Kalousek proposes, but only where proven efficient, not to cause new disequilibria. A period of recession is sometimes favourable for thinking. It seems that it is high time just now to provoke general discussion on the future longterm direction of the Czech Republic, a discussion free from usual political horizon “until the next election” and from undue pre-election campaign. Topics like support of science and research, functional pension system and sustainable demography, renewal of apprentice education, simplifying complicated public administration and tax and business bureaucracy, political party financing, corruption etc., should be discussed in the whole society and, as they are of a long-term nature, with the strive to find a general consensus between the existing Government and opposition as well as understanding of broad public. This may bring about new optimism and energy to cope with the present misery. Emanuel Šíp ■ Partner, Allied Progress Consultants Association český překlad naleznete v elektronické verzi magazínu na www.leadersmagazine.cz

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culture event Artists, the gallerist and friends in front of the Czech-German Association building in Konstanz

Encounter of talents in Manoir de Langourian in Brittany: An exhibition of paintings by Alena Beldová and Boris Jirků in Erquy. The exhibition is organized by Marta Davouze and the Jan Zrzavý Association, in collaboration with the La Femme Gallery. Prague-Villars-Konstanz-Tábor 2013: For more than a decade, the La Femme Gallery has organized creative trips to various corners of the world. In the past, it enabled artists to travel to Brazil, Canada, Equador, Andalusia, France… and this year, in collaboration with Ottokar and Jaromíra Kirstein, they organized a large project in Switzerland, as well as the German part of Konstanz where, on May 3, 2013, a grand exhibition opening took place in the Old Town Hall of Konstanz. The exhibition was opened by Roland Bunten, CEO of the Main Municipal Office of the City of Konstanz and Stanislav Degrell, President of the Czech-German Association. Thirteen Czech and one Slovak artist participated in the project.

From left: Marta Davouze, H.E. Marie Chatardová, Czech Ambassador to France, and Mme Christiane Guervilly, Mayor of the city of Erquy

H.E. Marie Chatardová, Czech Ambassador to France and Boris Jirků, Painter

125 Mr. Bohumil Eliáš Jr. in front of his father’s sculpture, created for the Jan Hus House in Konstanz

From left: Stanislav Degrell, President, Czech-German Association, Dr. Jaromíra Kirstein, Project Coordinator, and Roland VERSION MORE PHOTOS AND ELECTRONIC Bunten, CEO of the Main Municipal Offi of the City of Konstanz AVAILABLE ONceWWW.LEADERSMAGAZINE.CZ

Dr. Jaromíra Kirstein, Project Coordinator and Miroslav Lipina, Gallerist, La Femme Gallery, Prague

the good things in life

ANGKOR Which city was largest during the Middle Ages? Rome? Peking? Cairo? Istanbul? None of them, it was Angkor, located in South East Asia, in the area of today’s Cambodia and had a population of nearly a million. The Khmer empire stretching to 400 km2 excelled with its perfect infrastructure, waterworks engineering (an ingenious system of irrigation, construction of reservoirs “baray”, protective moats, etc.) and the impressive architecture of monumental temples and sacral buildings. Its overall urban layout indicated an extremely developed culture. “One of these temples, comparable to the temple of King Solomon and probably built by some ancient Michelangelo, could easily take an honorary place among our most beautiful buildings. It’s something much larger than what was left after ancient Greeks and Romans and represents a sad contrast to the Barbaric times in which our nation thrashes these days.” A note in the publication by French explorer, Henri Mohout, in the 19th century Re-discovery of the Angkor site In 1848, as the French Catholic missionary, Charles-Emile Bouillevaux, cleared his way through impenetrable Cambodian jungle, he came across the ruins of a large ancient city. Among them, he found Angkor Wat, one of the largest religious structures in the world. Bouillevaux wrote “I came upon several gigantic ruins. Supposedly these were remnants of a royal palace. On the walls, top to bottom, I saw reliefs of men ﬁghting with clubs and spears and elephant

Angkor Wat

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VICTIM OF ITS OWN SUCCESS

battles. Further, warriors shot three arrows from a bow at the same time.” The French naturalist and explorer Henri Mouhot, who followed Bouillevaux’s footprints ten years later, was equally impressed, when he saw over a hundred wats (temples) from the 9th to 13th centuries in the midst of the jungle. The Angkor temples show a gradual transition from hinduism to buddhism. Scenes from Hindu mythology, exotic dancers, kings riding elephants and emperors leading armies to war come alive in sculptures, reliefs and carvings. Mouhot’s excited news led to many further questions. Who built this stunning complex? And what caused its rise and fall? The oldest Cambodian written sources go only as far back as the 15th century. Now that Angkor was discovered, the thus-far unknown epoch of Khmer civilization began to emerge into light. The ruins of Angkor lie near Tonlesap, a large lake approximately 240 kilometers northwest of Phnompenh, the capital of Cambodia. Today, researchers ponder the fact that there is no evidence of the existence of cities prior to the 7th century AD in this area, which was already densely populated and technically advanced around 1000 BC, when the Khmer civilization began to rise. Their religion, a variety of Hinduism, was brought to southeast Asia by Indian merchants in the 1st century AD. The Khmers made documents from palm leaves or animal leather, materials that fell apart over time. Archeologists collected information on the history of the city from over a thousand inscriptions in stone, mostly in the Khmer language and Sanskrit. These inscriptions revealed that the main ﬁgure among Khmers during the times of their rise was

Bakong, a mountain temple

Jayavarman II, who freed his people from the Javanese yoke in the beginning of 9th century. He worshiped Shiva, one of the main Hindu deities and founded a cult of God-King. Upon the rulers‘ death, these temples became their tombs. Angkor (meaning “city” in Khmer) grew into a large metropolis, the size of today’s Manhattan. Angkor Wat The most amazing and largest temple, is particularly prized for its harmony of design, which is comparable to buildings of ancient Rome and Greece. According to Maurice Glaize, an archeologist working on the restoration of Angkor Wat in the mid 20th century, this structure, in its monumentality, with perfectly balanced details and proportions approaches the antique pattern of beauty. It’s a work of power, unity and style. Mouhot, similarly to other Western travellers, didn‘t believe the Khmers were capable of building something like this and incorrectly dated Angkor Wat to the time of ancient Rome. The true history of Angkor Wat was only discovered among the archeological digs in the entire Angkor area. During these excavations, it was mainly necessary to remove collected layers of soil and vegetation. King Suryavarman II had Angkor Wat built as his temple and tomb at the beginning of the 12th century. The temple is dedicated to the Hindu god Vishnu and its surface area extends to nearly two and half square kilometers. This gigantic temple is likely the largest religious complex ever built. Its layout is distinguished by a number of rectangular concentric walls. The tallest towers reach 60 meters, overlooking the surrounding jungle. During the winter solstice, the shadow of the nearby

the good things in life

Bayon Temple

Prasat Kuk Bangro temple reaches Angkor Wat, suggesting that the Khmer buildings also had an astronomical function. Angkor was a rich city, the soil of surrounding fields providing three rice harvests per year. Tonlesap lake provided plenty of fish and the surrounding thick forests were logged for enough teak and other woods to build temple floors and galleries. With such plentiful sources of food and construction material, it’s difficult to understand why Angkor was suddenly deserted. Why did this once prosperous city turn into abandoned ruins? There are various theories attempting to explain the fall of Angkor. But the most likely version is that the Khmers first learned to handle the seasonal floods by building huge lakes – reservoirs (called baray) for the rainy season. These reservoirs protected them from flooding and concurrently served for irrigation during times of drought. But over time, the inhabitants lost control of their water and this led to the extinction of their civilization. The drought periods extended and destroyed the irrigation system. In the 16th century, the government moved to today’s Phnom Penh and this gradual exodus of citizens allowed Angkor to be swallowed by jungle. Unlike the temple, which was built of brick and sandstone, common housing was built of far less durable materials, which succumbed to nature much faster and permanently. Only a bare minimum remains of the city itself – foundations of houses and outlines of streets.

Baphuon Temple

After its discovery, Angkor Wat became the symbol of Cambodia and is depicted on its national ﬂag. With it’s layout of approximately 1 km² it’s considered the largest religious complex in the world. During the civil war and the period when the country was under the control of the Red Khmers in the 1970’s and 1980’s, the works were halted for a period of time, fortunately without serious consequences, unlike the destruction of many relatively younger monuments. Other wats (temple complexes such as Bayon, Preah Khan, Bantey Srei and Ta Prohm) are good examples of Khmer architecture and clear evidence of high levels of social structure and artistic development. One of the reasons Angkor Wat is so admired is the rich decoration or interiors, primarily with basreliefs. The interior walls lining the external gallery are decorated with scenes from Hindu written works, the Mahabharata and Ramayana. Higham called this decoration as the largest linear carved-stone ornamentation in the world. Present Since the early 1990’s, Angkor Wat saw a massive rise of interest on part of tourists from all over the world. In 1992 it was added to the UNESCO list of world heritage sites, thanks to which the monument received the necessary funds and improvement of protection on part of the Cambodian state administration. Among others, a German non-proﬁt organization worked

on the restoration of Angkor Wat, attempting to protect the relief decoration from destruction. As is apparent from the research carried out by this organization, a total of 20% of the relief ornamentation, prior to beginning the restoration, was in a desolate stat. This was primarily due to weathering and erosion of the construction materials, but the previous careless attempts at restoration by cheap local companies also played its role. Among other restoration projects are plans to repair collapsed portions of the complex and their subsequent stabilization. For example, in 2002, the western frontage of the upper ﬂoor was supported by a special bearing construction and, in the meantime, a Japanese team of restorers completed repairs to the library in the northern area of the complex. In 2008, the World Monument Fund (WMF) began repair of the Angkor Wat gallery and professionals from the Czech Republic contributed their share to the restorations. However, the greatest credit for restoration goes to the French. But the future of these reconstructions is not sure. Angkor Wat is one of the most attractive tourist destinations worldwide. According to estimates between 2004−2005 it was visited by approximately 1,200,000 tourists, which makes up half of all tourists visiting Cambodia. In 2012, a new system of entry fees enabled a tripling of this number of tourists. The monuments are not merely visited by tourists, but also damaged and plundered. Tourism could represent a sufﬁcient amount of income for Angkor Wat, yet only a small portion returns to restoration of the monuments. Most of the renovation work is still sponsored by foreign organizations rather than the Cambodian government. We can only hope that the Angkor temple complex will not come to decline in this modern-age and will remain a tremendously valuable monument and heritage for future generations. By Iva Drebitko Photos: authors’ archive ■

Khmer, floating village near Angkor site

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ČSÚZ

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128 Foreign diplomats and members of the Czechoslovak Foreign Institute meeting a member of the Czechoslovak Foreign Institute, Minister of Labour and Social Affairs Ing. Ludmila Müllerová

Chinese delegation of representatives of the city of Shanghai was lead by the Deputy of the General Secretary of Shanghai City Government Xu Yibo (in the middle of the picture). Also presented was the Director of the Foreign Department Wu Xiaoxian (the third from the right) and the Head of Financial Section Jiang Xi Zhou (the second from the right) and representatives of the trade group Huaihai lead by Hesheng Wu, the head of their managing board (the third from the left)

ČSÚZ

Meeting with a member of the Czechoslovak Foreign Institute, Minister of Labour and Social Affairs Ing. Ludmila Müllerová (from the left) Sergey Khoshenko from the Russian-Czech Joined Chamber of Commerce, members of the Institute Ing. Radomír Šimek, Ing. Michal Morawski, the Chairman Jaromír Šlápota, the Vice Chairman Mgr. Radoslav Baran, Ing. Simona Šenkýřová from the Embassy of Saudi Arabia and PhDr. Helena Briardová, Member of the Managing Board of the Institute

The Czechoslovak Foreign Institute is an independent and voluntarily civic association that, regardless of political or religious orientation, co-operates with associations, clubs and individuals originating from the former Czechoslovakia and living permanently abroad and with their descendants. In present time, it concentrates mainly on the quality of education of children of our fellow countrymen in general and on Czech classes abroad, mainly at the university level. To fulfil that task, the Institute cooperates with various Czech and foreign institutions, organisations, schools, state bodies and individuals. Since 1945, the Czechoslovak Foreign Institute has its seat in Karmelitská in Prague and it is the place where the Club of Czech and Slovak speaking diplomats, foreign delegations, entre-

preneurs, politicians, specialists from different fields meet. There, they can get some information, useful contacts and they can hold pleasant personal talks above a glass of Moravian wine. In last few months, foreign diplomats for example appreciated an opportunity to meet the Minister of Labour and Social Affairs Ludmila Müllerová, a member of the Institute. They were informed about changes in the old-pension system in the Czech Republic. Delegations from China visit the Institute several times a year. Nine representatives of the industrial part of Chinese city of Shanghai visited the Czechoslovak Foreign Institute in March and they discussed the life in nowadays China with the Institute’s members. Membership of the Czechoslovak Foreign Institute consisting of entrepreneurs, politicians,

pedagogues, artists, historians, medical doctors, diplomats, is joined by new personalities who want to contribute to realization of the Institute’s projects for fellow countrymen abroad or just to enjoy meetings in Karmelitská where they can find nice representative place for their personal meetings. The place is used for example by directors of the machinery company Fermat, by the fashion designer Ing. Natali Ruden, the artistic director from Shanghai Mei Peterka or the Ambassador of the Bolivarian Republic of Venezuela Víctor Julian Hernández. And as Jaromír Šlápota, the Chairman of the Institute, emphasizes, that civic association is still open to everybody who wants to support financially its activity or to participate personally at realization of the projects for the fellow countrymen.

From left: Ing. Radomír Šimek, Member of the Czechoslovak Foreign Institute, Xu Yibo, Deputy of the General Secretary of Shanghai City Government, Jaromír Šlápota, Chairman of the Czechoslovak Foreign Institute, and PhDr. Libuše Benešová, Vice Chairman of the Czechoslovak Foreign Institute

129 From left: members of the Czechoslovak Foreign Institute Božena Zychová, JUDr. Daniel Borsuk, and Hana Hlaváčková

From left: members of the Czechoslovak Foreign Institute, Deputy of the Minister of Health Mgr. Martin Plíšek, Mgr. Marta Gellová and the Abbot of the Strahov Monastery Michael Josef Pojezdný, O. Praem

personal enlightenment

COSMIC CONSCIOUSNESS –

James A. Cusumano, PhD

A JOURNEY TO WELL-BEING, HAPPINESS, AND SUCCESS

PART IX: IMMORTALITYA,B

“I don’t want to achieve immortality through my work. I want to achieve it through not dying.” Woody Allen KEY CONCEPTS: ■ Scientists believe recent research results on telomeres−small threads of DNA within the nucleus of your bodily cells−can lead to a significantly longer lifespan. Some even speak of “directed immortality.” ■ In addition to eating and sleeping well and avoiding genetic toxins such as smoking and environmental pollutants, avoiding physical abuse, bullying and other forms of domestic violence can provide a longer lifespan. ■ Happiness and lasting fulfillment diminish chronic disease and have a positive influence in slowing down the aging process. ■ Exercise has been shown to slow down the ageing process and increases overall long-term health.

I doubt that Woody Allen was really serious. Who would want to live forever? But, as I will describe in this article, technology appears to be moving us in the direction of a much longer lifespan. In Greek mythology, three goddesses called the Fates determined at birth the length of time each person would spend on earth. Life span was said to be directly proportional to the length of a thread spun by the Fates for each person born. It now appears from recent discoveries in genetics that this mythological tale may be a good metaphor for the actual mechanism for longevity. Perhaps even more important, new scientiﬁc data suggest that your level of happiness or the lack of it may have a profound impact on how long you live. Some scientists even speak of genetic immortality, a kind of “directed immortality” (Figure 1)1. Allow me to explain.

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WHY WE AGE Your body is made up of approximately 50 trillion cells. Inside each of these cells is a nucleus and inside each nucleus there are 23 pairs of chromosomes which determine not only your sex, but also all of your physical and many of your personality traits. These microscopic chromosomes are long threads of DNA, and at the very end of each of these threads are specialized tighter stretches of DNA called telomeres, basically caps on the ends of the DNA threads (Figure 2). These telomeres play a critical role in your body because they protect your DNA from unraveling when exposed to toxins, carcinogens and other genetically damaging agents.2 Otherwise you would likely die shortly after birth. Some scientists describe a telomere as not unlike the plastic tip at the end of your shoe laces. If you don’t have that little tip, then the end of your shoelace will fray away and it will not work properly. It will not thread easily through the eyelets in your shoes. This is exactly like the ends of your chromosomes; if they don’t have a telomere tip on the end, they too will fray away.3 In order for you to achieve healthy growth from birth to an adult your cells must replicate, i.e., reproduce themselves. When they replicate throughout your lifespan, they cannot copy their DNA all the way to the very end of the capping telomeres. Therefore, with each replication of a cell, its telomeres grow shorter and shorter. Eventually over many years, when the telomeres become too short, the DNA unravels and the cell can malfunction and die. Unraveling the ends of the DNA also causes them to become very sticky. Using the shoelace analogy, the shoelace ends become stuck together and this dramatically changes the genetic material which can have disastrous consequences for you. It’s a bit like your shoelaces from both shoes becoming stuck or tied together, which can make you fall. Scientists have found that the elderly have much shorter telomere caps than young people, and therefore they believe that telomere length is a marker for longevity and general cellular health. All research results with telomeres support this conclusion. Dr. Carol Greider, a molecular biologist at Johns Hopkins University, who shared the 2009 Nobel Prize in Medicine points out that, “When the telomere gets to be very, very short, there are consequences,” leading to a signiﬁcant increased risk for age-related diseases.4 Another

way of saying this is that if we could maintain the telomere length on the chromosomal part of the DNA in our cells, we would likely suffer much less bodily degradation with time and live much longer. SIGNS OF IMMORTALITY Molecular biologist Dr. Elizabeth H. Blackburn, who shared the Nobel Prize in 2009 with Professor Greider has for some years studied single-cell river creatures called tetrahymena, which have an enormous number of chromosomes.5 She discovered something quite amazing. Dr. Blackburn determined the structure of the telomeres in tetetrahymena and found that they were not getting shorter with time as is the case for all other living species.6 In fact, DNA was adding on to the ends of the telomere caps; they did not wear away with each replication as is the case for other living species. The cells could replicate endlessly−they were immortal!7 This had never been seen before for any other living creature on the planet. The relevant question therefore is, “If we can determine the mechanism for maintaining telomere length, could this be applied in people, and if so, would they live a much longer lifespan? Some scientist thinks, yes. HAPPY PEOPLE LIVE LONGER In my latest book, BALANCE: The Business-Life Connection, I report on scientific findings which indicate that 40 percent of your level of happiness appears to be genetically set, but the other 60 percent is determined by the environment in which you choose to live and function and the activities you choose to practice.8 All in all you have significant control over your long-term happiness and fulfillment−60 percent! A

EDITOR’S COMMENT – This is the eighth article in a series based on the author’s book, “Cosmic Consciousness – A Journey To Well-being, Happiness and Success.” In this book, published in both the Czech and English languages within one volume, and with an introduction by internationally-acclaimed author, Dr. Deepak Chopra, Dr. Cusumano explains in simple terms, the connection between Eastern Philosophical Wisdom, consciousness and quantum physics. His new book, BALANCE: The Business – Life Connection is based on three decades of personal experience on how to achieve success and fulﬁllment in both your personal and professional lives, and was published in April by SelectBooks in New York City. B The author may be reached at Jim@ChateauMcely.Com.

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personal enlightenment Figure 1: My Search For The Holy Grail of Immortality1—New technology has set the stage for “Directed Immortality” in humans.

Now studies at Duke University have shown that experiences in childhood, perhaps even later in life as well can affect the telomere length on your DNA−essentially nature’s impact on nature. In this study, researchers followed 1,100 British families with twins who were born in the 1990s. They took DNA samples from the children at 5 and 10 years of age.9 Over the years, the researchers also conducted in-depth interviews with the twins’ mothers. Those children who experienced during their youth, some form of negative event, such as domestic violence, frequent bullying or physical maltreatment by an adult, had signiﬁcantly more telomere loss than other children who did not have these experiences. Since shorter telomere length has been connected to poor survival rates and chronic disease, this does not look good for those children. It suggests that negative events foster the onset of chronic disease and a shorter lifespan, while happiness and fulﬁllment support a health and longevity. In another study at Brigham and Women’s Hospital of over 5,000 nurses, scientists found that middle-aged and older women with phobic anxiety tend to have shortened telomeres, a condition that is considered to be a sign of accelerated aging and has been linked to an increased risk of cancers, heart disease, and dementia. The study found that highly phobic women tend to have telomere lengths similar to non-phobic women who are six years older.10 Exercise appears to be one way to counter the negative effects of stress, anxiety and violence. In a research program carried out in Germany, scientists studied large numbers of elderly men and women who had been runners much of their lives and compared their telomere lengths with young adults and also with an elderly group that had been relatively sedentary and had not exercised throughout their lives.11 The runners had telomere lengths comparable to young adults and overall the elderly runners had telomere lengths that were 75 percent longer than the elderly non-runners. As these researchers noted, “At the molecular level, exercise has an antiaging effect (Figure 3)12”

TO BE CONTINUED...

LIVING A LONGER HEALTHIER LIFE The implications of these studies are that if you want your children to live a longer, healthier and more fulfilled life, then you might consider the following: − In addition to eating and sleeping well and avoiding genetic toxins such as smoking and environmental pollutants, you might want to be sure they avoid physical abuse, bullying and other forms of domestic violence. − In fact, consider the converse, happiness and lasting fulfillment have a very positive influence in preventing or slowing down the shortening of those little telomere tips and hence the aging process. − Exercise slows down the loss of telomere length which is why in the German study, elderly people who had been runners not only looked much younger on the surface, but were also younger genetically beneath the surface. Finally, I would like to revisit the point that I discuss in my book BALANCE: The Business-Life Connection−fulfilled people live longer, healthier, and happier lives. They may not be immortal, but they have discovered that true long-lasting health and happiness come about from the following process. You first must identify you true ESSENCE, that capability that you came into this world with and that sets you apart from others around you, and which you love to practice and pursue. Then you must connect that capability with a NEED in this world that makes it a better place in which to live. I don’t care if you work in a beer company or a biotech firm, there is always a means to improve on the world with your chosen profession. In doing so, you will have discovered your LIFE PURPOSE. I can assure you that this will generate deep PASSION and result in high levels of emotional and physical ENERGY enabling you to accomplish incredible progress in a short period of time. This energy and passion will open up your CREATIVITY and enable you to address difficult challenges, leading the way to INNOVATION in both your personal and professional lives. This inevitably brings a RETURN−financial, psychological, emotional, or spiritual−or some combination of them. The result is a deep sense of GRATITUDE which is always the basis for long-lasting HAPPINESS and FULFILLMENT.13 Isn’t that what you’re really after? You don’t have to live forever, but you surely can live a longer, healthier and more fulfilled life, Figure 2: Chromosomes with telomeres in pink.2

Figure 3: The tree of Immortality13: At the molecular level, exercise, happiness and fulﬁllment seem to lengthen the human lifespan.

and at the same time leave this world a little better place in which to live. Although if science has it way, your children and grandchildren may have the option to improve their health and extend their lifespan by quite some measure! Enjoy the journey! James A. Cusumano, PhD ■ 1

emeagwali.com Lee J. Siegel, http://learn.genetics.utah.edu/content/begin/traits/telomeres/. 3 Joseph Stromberg, Smithsonian Magazine, January 2013, p. 14. 4 Carol Greider, http://www.greiderlab.org/. 5 Elizabeth H. Blackburn, http://biochemistry.ucsf. edu/labs/blackburn/index.php?Itemid=3. 6 http://en.wikipedia.org/wiki/Tetrahymena. 7 Op. cit., Stromberg. 8 James A. Cusumano, BALANCE: The Business-Life Connection, SelectBooks, New York, April 2013. 9 Katherine Rowland, “Childhood Stress Leaves Genetic Scars,” Science Now, April 24, 2012; http://news. sciencemag.org/sciencenow/2012/04/childhoodstress-leaves-genetic.html. 10 http://www.brighamandwomens.org/about_bwh/ publicaffairs/news/pressreleases/pressrelease. aspx?pageid=1215. 11 http://well.blogs.nytimes.com/2010/01/27/physed-how-exercising-keeps-your-cells-young/. 12 www.Rahimz.DeviantArt.Com 13 Op. cit., Cusumano. 2

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 environmentallybenign, 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 coauthor of Freedom from Mid-East Oil, released by World Business Academy Press (www.WorldBusiness.Org) and the author of Cosmic Consciousness – A Journey to Well-being, Happiness and Success, published in English and Czech by Fortuna Libri, 2011. His new book, BALANCE: The Business – Life Connection will be published in April by SelectBooks in New York City.

Leaders Magazine III/2013 131

culture events

From left: Zdeněk Šorf, Artist, Mgr. Petr Šťastný, Attorney at Law, Seddons s.r.o., Prof. Pavel Marinič, Škoda Auto University, Mladá Boleslav, Ing. Lenka Týčová, Project Manager, Czech Chamber of Commerce, Benke Aikell, your Publisher, and Miro Smolák, Owner and Director, MIRO Gallery Prague

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MIRO Gallery, Church of St. Rochus

From left: Bohumil Procházka, Owner, Imperial Hotel Karlovy Vary, Ing. Michal Morawski, Ministry of Finance, Prof. JUDr. Zdeněk Jičínský, DrSc., Lawyer and Politician, and JUDr. Cyril Svoboda, former Minister of Foreign Affairs and Director of Diplomatic Academy

From left: Benke Aikell, your Publisher, Alena Miro, Soprano, Soloist of the Prague National Theatre, and Jaromír Šlápota, Chairman, Czechoslovak Foreign Institute

Lenka Vácvalová, Actress and Moderator and Juraj Filas, Composer

132 From left: Jaroslav Šuvarský, the Orthodox Church of Lands with his wife and JUDr. Petros Alexandridis, Director, The Royal Canonry of Premonstratensians at Strahov with his wife

From left: Boris Basistyy, Judicial Expert, Commercial Agency of the Russian Federation in the Czech Republic with his wife and Jiří Čunek, Senator

culture events

From left: Volkan B. Tanyildiz, Second Secretary, Turkish Embassy, Galina Todorová, Director, Bulgarian Cultural Institute, and Juan Braun, Writer and President of the Journalist with no Borders

From left: V. Kovář and Michal Kvašňovský with their wives and Zdeněk Šorf, Artist

From left: Tomáš Studnička, Committee Member, Czech Management Association, MUDr. Dana Odehnalová, MBA, Director, ResVinia, and Ivo Gajdoš, Executive Director, Czech Business Council for Sustainable Development

From left: Héctor Castillo, Attaché for Culture of Venezuela, Sven Hannß, Culture Department, Embassy of Germany with his wife, and Viktor Matsko, Counselor, Ukrainian Embassy

From left: MgA. Vladislav Kučík, Director, Office of the Senate and JUDr. Pavel Kysela, Director, Czech Tax Administration

133 From left: Oldřich Kříž, Baritone, Soloist of the Prague National Theatre, Alena Miro, Soprano, Soloist of the Prague National Theatre, and Miro Voštiar, Owner of Aria Hotel, Art Collector

From left: Václav Čapek, TV Moderator and Redactor, Dana Malobicky, Businesswoman, and PhDr. Ing. Jan Vodňanský, Poet, Singer, Composer

EU matters interview

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ResearchinAviation: THE CLOSER YOU GET TO THE PRODUCT, THE MORE CONFIDENCE YOU NEED! Interview with Eric Dautriat, Executive Director of Clean Sky Joint Technology Initiative

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Amsterdam Athinai Berlin Bratislava Bruxelles Bucureşti Budapest Dublin Helsingfors København Lefkosia Lisboa Ljubljana London Luxembourg Madrid Paris Praha Rïga Roma Soﬁa Stockholm Tallinn Valletta Vilnius Warszawa Wien

EU matters interview Dear Mr. Dautriat, joint technology initiatives can be considered as new instruments of cooperation between the European Commission and private sector. Could you please present the role of Clean Sky JTI in fulfilling EU policies and explain pros and cons of such cooperation? Clean Sky JTI, a Public Private Partnership between the European Commission and the EU aeronautical industry, was set up in 2008 to bring significant step changes regarding the environmental impact of aviation. It is managed by the Clean Sky Joint Undertaking until 31 December 2017. In the period 2008-2013, Clean Sky has a budget of € 1.6 billion, contributed to on a 50/50 basis by the Commission and the aeronautical industry. Our aim is to speed up technological breakthrough developments close to innovations where there is a need to demonstrate advanced technologies. Technologies allowing for the step change have to be concurrently developed, integrated and validated to maximise the benefit of technology interaction. Therefore the initiative is about large demonstrators where several technologies are put together and checked whether interoperable. As you know, technologies can be matured to a certain point, and their increase requires costs and bears risks. As regards environmental issues, we consider that the market is not able to address this externality on its own; added to the risk level, this justifies the public funding. Clean Sky integrates numerous aviation sectors and facilitates the application of the research results on the future market and this attracts the interest of the private sector. In a nutshell, we develop technologies, not products, and it is up to the industry to decide when to implement them. At the same time, our goal is to reduce the environmental footprint of aviation (i.e. emissions and noise reduction but also green life cycle). These objectives are in line with environmental goals set by ACARE - Advisory Council for Aeronautics Research in Europe (the European Technology Platform for Aeronautics & Air Transport) to be reached by 2020, such as reduction of 50% of CO2 emissions through reduction of fuel consumption. Clean Sky is ACARE’s main operational arm. Starting from 2014, we expect there will be a continuation of the Clean Sky initiative under the Horizon 2020 program. We can find between your partners big industrial leaders in the EU. What does Clean Sky offer to SMEs? Clean Sky addresses almost all areas of aeronautics and involves main companies of aeronautical industry. In total, we have 500 participants and many of them are small and medium-sized companies. Among Clean Sky beneficiaries through calls for proposals, 38% are SMEs, so we have a high success rate. Clean Sky helps SMEs to shorten the time to market for new and cleaner solutions tested on full scale demonstrators in a simple way. In Clean Sky, SMEs are in the downstream research and they have the possibility to directly connect to integrators. They contribute to a very precise activity. Last but not least, they keep their intellectual property rights. On May 30,

2013 we organize a Clean Sky SME Day which will focus on the role of European SMEs in the strategic aeronautics business, participation of SMEs in Clean Sky and on the benefits of research programmes. The list of Clean Sky members shows that you are well known to companies from aeronautical industry. Unfortunately I do not see any Czech Member. If I were a company, what kind of profit I could get from my membership in Clean Sky? You are right. From the EU-12 there are not enough companies participating in Clean Sky despite the raising awareness we continuously do. Mainly it is due to the fact that key industry leaders and many important tier-ones come from EU15. Secondly, SMEs can be struggled with the necessity to co-finance the projects. There can also be some reluctance vis-à-vis the supposed “redtape” linked to European programmes. However, at this moment, we are in a preliminary discussion for Clean Sky 2 and the Czechs are intended to play an important role in the next period through the inclusion of general aviation (airplanes up to 20 seats) in Clean Sky 2. In Clean Sky today, we have 12 integrated technology demonstrator leaders. These are industrial organisations that contributed to the build-up of the Clean Sky proposal and each of them leads or co-leads a specific integrated technology demonstrator. In the Clean Sky 2 proposal there will be 16 ITD leaders and one of them will be from the Czech Republic. We will be happy to welcome the Czech company – Evektor to the family: this has recently been confirmed by the usual “large integrators”. As for the services the potential participants can get from us, we offer the possibility to participate in calls for proposals, and we bring information on how to do it. The participation of SMEs as partners is encouraged and is funded up to 75%. In average we launch three calls a year and then we look for the proposals made by the participants. How does Clean Sky help to ensure that the “green costs” engaged to reach EU environmental goals will not hamper the EU leadership in aeronautics? You might think about EU Emission Trading system that has been put on a hold at international level. Nevertheless, while our final objectives are the same, the path followed by Clean Sky is different as they help companies to reduce fuel consumption while reducing costs. And there is no doubt that this environmentally friendly objective goes hand in hand with competitiveness. What is the future of aviation sector compared to other transport sectors? Is there any strategy to share the results reached in “greening” of one sector to another? For the moment there is no dedicated process to cooperate with other sectors. However we exchange best practices. A good example is the eco-design which addresses many phases of production (materials, raw materials, green maintenance etc.). Unlike large companies, SMEs are

not so specialized and their results can be applied to other sectors. It is a natural way of doing things. We are very satisfied to have newcomers to the aeronautical world, bringing innovation from the outside. Your members are active not only in Europe but in the whole world. Therefore the results got within Clean Sky are spread over the World. Are you engaged in international cooperation? Large European-based industrial leaders are global players and it is not possible, and not desirable at all, to avoid spreading the future products resulting from EU-funded research outside EU borders. We are engaged in decreasing CO2 emissions and global warming ignores boundaries. USA and Canada have their national “green” targets. Aeronautics is a global industry without borders. Beyond that, the companies from this sector need to comply with international rules of standardisation. And new technologies developed within Clean Sky can result in the future according to common rules in certification. Within Europe, there are national programmes as well; each national body is checking the consistency of its research programme with the European level, in order to avoid undue duplications Clean Sky brings on board large industrial leaders. How difficult it is for them to cooperate together when being competitors? In this respect, it is true we have some areas where there is a direct competition between leaders, such as engines and helicopters. What the JTI system offers to them is to cooperate in areas where it is relevant. They understood the need for sharing the costs and cooperate on research. Of course, the closer you get to the product, the more confidence you need. This way of cooperating on a particular product while you are competitors is now common in aeronautics, worldwide – it’s sometimes called co-opetition. It works! Thank you for the interview! Alena Vlačihová, Director of CEBRE – Czech Business Representation to the EU ■

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EU matters debates

From left: Ladislav Novák, Director of the Association of Chemical Industry of the Czech Republic, Jarmila Sládková, Department of Risk Prevention and Chemical Security, Ministry of Environment of the Czech Republic, Gustaaf Borchardt, Management Board Member of ECHA for DG ENVI and, until recently, Director of DG Environment Directorate D – Water, Marine Environment & Chemicals, and Alena Vlačihová, Director of CEBRE – Czech Business Representation to the EU

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REACH Impact on SMEs IN CHEMICAL INDUSTRY MUST BE MITIGATED Regulation on registration, evaluation, authorization and restriction of chemicals (REACH) scored among the ten most burdensome EU legislations by European SMEs last year. According to the Czech chemical industry representatives, REACH increases costs of business in the EU and reduces its competitiveness in the world. Review of the regulation issued by the European Commission (EC) in early February admitted that REACH is burdensome and has negative impact on SMEs. The EC thus agreed to reduce fees for SMEs and increase those for large companies in a way that there would be no loss in revenue of European Chemicals Agency (ECHA). The EC does not consider overall revision necessary at this time. Impact of REACH regulation that improved the protection of human health and environment in the EU was the topic of the discussion at European House in Prague on April 29th among representatives of the European Commission, Czech government, private sector and general public.

136 Jan Michal, Head of the EC Representation to the Czech Republic

From left: Václav Matyáš, President, Association of Building Entrepreneurs in the Czech Republic, Marek Pastucha, Director, Department of EU Funds, Ministry of Transport CR, Petr Kašík, Executive Director, Transport Union of the Czech Republic, Stephane Ouaki, Head of Unit, Connecting Europe – Infrastructure Investment Strategies, General Directorate of European Commission for Mobility and Transport, and Alena Vlačihová, Director, CEBRE - Czech Business Representation to the EU

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Future of Transport Projects DEPENDS ON QUALITY OF THEIR PREPARATION Preparation of the next programming period of the EU 2014 – 2020 offers a great opportunity to evaluate the allocation of EU money to transport projects realized in the current financial period (2007–2013). EU money supporting transport sector in the Czech Republic is channelled through the Operational Programme Transport (OP Transport) which represents approximately 20% of the whole financial envelope. Beside the OP Transport, it will be possible in the future to use complementary instruments such as Connecting Europe Facility to finance cross-border projects in the ICT, transport and energy sector. Future funding and investment projects in transport sector were discussed by large public with experts in the European House in Prague on March 5th, 2013. The debate was organised by the Representation of the European Commission in the Czech Republic and European Parliaments’ Information Office in the Czech Republic together with the Confederation of Employers’ and Entrepreneurs’ Associations of the CR and CEBRE – Czech Business Representation to the EU.

Emanuel Šíp, Independent transport expert

From left: Marek Pastucha, Director, Department of EU Funds, Ministry of Transport of the CR, Petr Kašík, Executive Director, Transport Union of the Czech Republic, and Stephane Ouaki, Head of Unit, Connecting Europe – Infrastructure Investment Strategies, General Directorate of European Commission for Mobility and Transport

Participants of the debate

137 Jan Michal, Head of the EC Representation in the CR

EU matters business

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BUSINESS NEWS MAY 2013

...MEPs opposed increasing prices of “polluter’s permits”? Greenhouse gas emissions were supposed to become more expensive as a result of freezing their auctioning (backloading), as proposed by the European Commission previously. Majority of MEPs, however, felt that it would weaken confidence in the Emission Trading System (ETS), which is an effective tool of preserving emissions under control. Not all agree claiming that an oversupply of credits must be corrected to make the system function. ...CEZ has committed to open energy market? In 2011, the European Commission started investigation into the Czech electricity sector, being concerned that Czech energy company CEZ is abusing its dominant market position. CEZ in response proposed to sell 800-1000 MW of generation capacity, allowing new potential competitor to enter the electricity market. The Commission accepted the commitments in April 2013 and made them legally binding, supported by a fine of up to 10% of CEZ’s total turnover in case of infringement. ...long awaited Schengen Information System II goes live? Current Schengen Information System (SIS I+) has been essentially in operation since mid-nineties and there was an increasing need for transfer to a more up-to-date system. Schengen Information System II (SIS II), released in April, is stateof-the-art tool using modern technology and improved structure that reduces inefficiency of the old system. It incorporates enhanced alerts on persons and objects or biometric data and is enhancing the exchange of information between respective authorities, thus increasing security and facilitating free movement. ...the European Parliament pursued rapid dispute resolution? During spring plenary session in Strasbourg, Members of the European Parliament approved new rules on Alternative Dispute Resolution (ADR) directive and Online Dispute Resolution (ODR) regulation. Common standards of ADR scheme aim to provide shoppers with faster and cheaper alternative to formal court processes. ODR will empower the European Commission to provide online user-friendly platform in all EU languages. New legislations will enter into force 20 days after their publication in the EU Official Journal.

observed in newest member states – Bulgaria (€3.7) and Romania (€4.4), while the highest in Sweden (€39.0) and Denmark (€38.1). The Czech Republic is with €10.6 far below average; nevertheless, the percentage increase is twice as high as the average. Horizontal analysis suggests that employers pay the most in industry followed by services and construction. Europeans have started to lose faith in CSR According to recent poll (Flash Eurobarometer by the European Commission) 39% of European citizens believe that companies are not as intense in corporate social responsibility as they used to be 10 years ago. On the other hand, 40% of responders claim that companies are more attentive to society. The latter is the case mostly for responders across the USA and developing economies (74% of Brazilians, 65% of Chinese, 62% of Indians, and 44% of Americans). European citizens are split in half, 50 % being convinced about negative impact of companies and 40 % of positive impact. Global loss of €200 billion due to counterfeit Fake goods damage legitimate business, endanger many jobs in Europe, suppress innovation and even impose health risks. The global volume of trade in fake goods stands at over €200 billion per year, according to data of the European Commission. In 2011 alone, overall value of over €1.2 billion of fake goods was detained at the EU borders, an increase of 11% compared to 2010. Third of these products were potentially dangerous to the health and safety and 27 million were fake medicines. The Commission is therefore holding a strong anti-counterfeiting campaign combined with further strengthened market surveillance and multiannual plan. 53,160 start-ups and 400,000 jobs created by Cohesion Policy These numbers suggest the impact that Cohesion Policy had on battling crisis and supporting growth in Europe by 2011. As the European Commission presents in the 2013 Strategic Report, further 1.9 million more people gained broadband access, 460 km of TEN-T roads and 334 km of TEN-T rail were built and 2.4 million people assisted by the European Social Fund found a new job in this period. The impact of Cohesion Policy is expected to strengthen as programmes are running until 2015 under the European Regional Development Fund, Cohesion Fund and European Social Fund.

LET S TALK NUMBERS…

IN THE WORLD

Hourly labour costs vary between €3.7 and €39.0 across the EU Latest estimations of the EU statistics ofﬁce, Eurostat, show that hourly labour costs vary signiﬁcantly across member states. The average value is €23.4 in the EU27 and €28.0 in the euro area, with roughly one quarter being non-wage costs. Lowest labour costs have been

EU business mission to Russia In order to foster mutual relationship with Russia the Vice-president of the European Commission, Antonio Tajani, is conducting a business mission to Moscow, Tver and St. Petersburg on 17th-19th June. Main objectives are the support to mutual relationship, facilitating business cooperation and establishing of new enterprises in

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the Russian Federation as well as intermediating potential international partnerships. It will address the following sectors in particular: cutting and industrial machinery, nanotechnologies, biotechnologies, optics, construction, engineering, forestry, pharmacy, textiles, raw materials, consumer goods, medical equipment, food industry and tourism. EU accession talks with FYROM to be started by the end of June The Former Yugoslav Republic of Macedonia will most probably start accession talks with the EU by the end of June 2013. This is an opportunity for great advances in bilateral relations, since negotiations promote further reforms and cooperation with neighbours. Special attention is paid to domestic political establishment, inter-ethnic tensions, anti-corruption measures, independence of judiciary and media. A step forward in EU-Armenia relations Deepening relationship with Armenia has been marked by another milestone when the EUArmenia Readmission Agreement was signed on 19th April 2013. It is a result of successful talks within Eastern Partnership, strengthening mutual cooperation in the fight against irregular immigration. Negotiations about visas and immigration had been held since September 2011, first resulting in the Visa Facilitation Agreement last December. The European Parliament now needs to give its consent before both Agreements can be concluded. Negotiations are furthermore ongoing with neighbouring country, Azerbaijan. Japan is open to trade with EU First rounds of negotiations in Brussels between Japan and the EU are the past and next round in Tokyo is just behind the corner, taking place on 24th-28th June. Both sides of negotiations are striving for a Free Trade Agreement that would enable both economies to grow. The framework should be a comprehensive agreement in goods, services and investment eliminating tariffs, non-tariff barriers and covering other traderelated issues, thus boosting Europe’s economy by 0.6 to 0.8 % of its GDP, creating up to 400.000 jobs and increasing EU export to Japan by 32.7 %. ...trade defence will be more transparent? The Commission proposed modernisation of rules against unfair competition from dumped and subsidised imports. According to the proposed rules, the Commission shall inform businesses about any provisional anti-dumping or anti-subsidy measures in advance, initiate investigations on its own without an official request from industry or impose higher duties on imports affected by unfair subsidies. The legislative proposal must be approved by the Council and the European Parliament. Brought by CEBRE – Czech Business Representation to the EU (kindly supported by Ministry of Industry and Trade of the CR), www.cebre.cz

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