19 minute read
THE 30-YEAR-LONG JOURNEY OF LOOKING AHEAD
JPM Jankovic Popovic & Mitic is one of the oldest members of the German-Serbian Chamber of Commerce and, at the same time, the oldest full-service commercial law firm in Serbia
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In an interview for the jubilee issue of InFocus Germany, we spoke with JPM Jankovic Popovic & Mitic Law Firm, namely with the firm’s three founders Nikola
Janković, Nenad Popović, Miloš Mitić and
Dr Jelena Gazivoda, who became a Senior
Partner and one of the firm’s top executives in the 2000s.
Why is this year so special for you?
Nenad Popović: This year, we are proud to celebrate the 30th anniversary of our partnership and legal practice. If we were to draw a timeline of our history, it would start back in 1991. Since good ideas don’t just 'come to you’, the years before our partnership defined the course of our future business.
How did you decide to join forces and form this partnership?
SUCCESSFUL
Nikola Janković: We were young lawyers working in the challenging economy in the country that was gradually falling apart. We felt the change and the whiff of market economy steadily taking over, and we wanted to participate in the formation of the new economy and legal market. Rules were quite different to what we were prepared for, during our studies. Most of all, we wanted to create a modern multi-practice law firm resembling Western law firms we saw in legal magazines and movies. We knew that this was not easy, but being young and having high aspirations, we embarked on what today is a 30-year-long journey of continuously looking ahead.
So, there was a shared goal?
Miloš Mitić: JMP developed and defined so much of what we today know about making law a successful business. Most importantly, with it came the unmistakable evolution of our three different characters sharing one vision. We wanted to help businesses achieve their goals by bringing the added value, rather than be only a cost to our clients.
You started during the challenging decade of the 1990s and made it all the way? Nenad Popović: We now see that the whole
endeavour was a huge effort, especially in the first ten, more than challenging years throwing hell and high water at us. Doing business with international sanctions, hyperinflation, war and even bombing of our country was not without considerable personal risk and usually extraordinary out-ofthe-box solutions where required. Guided by the true spirit of partnership, we have successfully navigated rough waters of the first 10 years and have entered a much more stable period while becoming what we were hoping to be - a modern Serbian law firm delivering the highest quality of service to the legal market in Serbia and the SEE region and recognized as such by our clients and peers.
Is it hard to always align three opinions and make the right decisions?
Nikola Janković: We have always communicated from three different angles, and it gave us a unique and broad perspective of each client’s needs, not to mention a perfect understanding of specific business approaches used in each case. It is our adaptability, knowledge and competence that made it possible to make a successful combination of discipline and an exceptional set of legal business skills, which we have developed over many years so that we can build teams and specialize in diverse practice areas.
What does that mean in practice?
Miloš Mitić: Choosing the right people with expert knowledge in every major industry got us extremely well organized in both practice groups and multi-disciplinary teams with specialist lawyers. The way to make all these highly skilled people speak the same language was to share one communication model - 'care' of people and clients. This model is a common language across all practice areas, of which we have 20 in total. It facilitates common understanding, open discussions, knowledge-sharing and deep market intelligence.
We see a trend of smaller and boutique law firms developing. Still, you manage to maintain a different format.
Nikola Janković: The working process is as old as we can remember and developing practices is what makes JPM unique. We have managed to create optimum synergy through an inventive approach, to the level that has not been feasible on the largescale legal practice in Serbia and the region before. We built strong partnerships, offered tailored legal advice to international clients entering Yugoslav, and later on, Serbian and CEE markets. Our service was recognized by the quality equal to big international law firms.
Were your main clients some of these companies?
Miloš Mitić: We opened the market and led the biggest international companies through the economy ‘earthquakes’ and the privatization in Serbia and the region. Our first big successful transaction was acquiring the local technical gas producer Tehnogas on behalf of the Messer Griesheim Group from Germany. The other big transactions soon followed, like the establishment of the first two foreign banks in Serbia after the Second World War, the first hostile takeover, the first EUR 1 billion transaction, and many more.
You mentioned both Serbia and CEE region as your markets.
Nenad Popović: Parallel and equally successful was our growth in the wider international landscape. We have extended our geographical reach through memberships in Lex Mundi (the world’s premier network of independent law firms) and our own regional TLA network, which positioned us as a one-stop-shop for the clients requiring multi-jurisdictional legal service.
What did the 2000s bring you, the era of fast technology and developing new industries?
Nenad Popović: Our team grew and our lawyers, although being strong individuals, are also great team players, fast, available, specialized in terms of practice area and industry. We have been bold in reshaping internally. With a growing partnership, we become even more JPM than before. One of our colleagues, Dr Jelena Gazivoda, a lawyer who “grew” with the office and brought another managing perspective, expertise and a new angle of looking at the future of our business, came on board our management team. Furthermore, with the implementation of the latest legal technology solutions, we can streamline work processes and collaborate more closely with clients, who come from every industrial and corporate sector: energy, banking, transport, manufacturing and telecommunications. Now, we are expanding our services to growing industries, such as renewable energy, IT and life sciences, using innovative solutions and a pro-active approach.
TRUE SPIRIT
We keep our attitude essential and uncomplicated, perpetuate tradition of trust and reliability, still guided by the true spirit of partnership
How important are awards to you? We know that JPM has been one of the highest-ranked offices for years.
Jelena Gazivoda: Recognition of our clients and peers which continuously makes us one of the highest ranking law firms among the leading law firms by independent guides such as Chambers & Partners, Legal 500, and IFLR1000, are our greatest inspiration. They pave the way for new solutions in the most complex legal issues, and we can see that expertise and experience lead to the biggest success.
Looking at the future, what do you see?
Jelena Gazivoda: Growing to the 35+ lawyers in our team, we have embraced changes and remained devoted to the pioneering approach. Our regional presence and international success will still be supported by investing in further development and new people. Dedication offers exceptional results and looking at the young members of our team today, we know that our business will continue to grow at a charging pace, flexible and agile, especially in the challenging times we always look forward to. We keep our attitude essential and uncomplicated and perpetuate the tradition of trust and reliability, which have always been exercised by individuals for individuals, still guided by the true spirit of partnership.
A GOLDEN EXAMPLE OF RESPONSIBLE BUSINESS
Diverse rewards for dm in the pandemic era
The largest drugstore chain in Europe - dm drogerie markt, a retailer of food, drinks, household, and personal care items, was founded in 1973 in Germany. This Austrian-German company has been operating in the Serbian market for over 17 years and has always been focused on supporting the community, which has been especially evident in the past year. In the era of the Coronavirus pandemic, they have become an example of support when it comes to employees, the environment, as well as the whole community. Thanks to such an approach, the company won numerous awards right in the year of the pandemic. Based on a comprehensive assessment of activities related to relations with employees and customers, the Chamber of Human Resources Managers awarded dm the gold award "Best in Serbia 2020", but also the recognition for "Best Response to the Coronavirus Pandemic". The company has received these awards owing to its through approach to employees in this period, where dm took a number of measures that included the payment of Covid bonuses in the amount of RSD 18,000 with a regular September salary, necessary health care, systematic examination and free Covid testing and numerous training workshops. Dm was recognised as a leader in several corporate segments. According to the research of youth preferences, conducted by the Belgrade Youth Fair in cooperation with the Employer Branding Agency, the dm company took first place in the category of the Most Desirable Employer in the field of retail. The survey was conducted in December 2020 and included 2,870 respondents from all regions of Serbia. However, this is not the first time that dm has been awarded similar recognition since it was in the top 15 companies on the list of most desirable employers in Serbia in July last year, taking first place among retail chains, as part of the "TalentX" survey conducted by a specialized portal Jobs Infostud.
Guided by a mission to always be at the top of the ladder and to follow all the trends that are in front of them, dm continuously acts in the spirit of the times and applies innovations in every segment of business. Thanks to that, the company also received the recognition "Top 50 - the best online things" in the Instagram category, which is awarded by the PC Press editorial office. Known for its constant aspiration to be socially responsible, dm also carried out various humanitarian activities in the previous year. For the second year in a row, they gave Black Friday a new meaning by directing five percent of the traffic on that day to humanitarian purposes. A total of three million dinars were collected for a donation to the soup kitchens of the Serbian Red Cross. In addition, the company donated two medical respirators worth 36,000 euros to the Institute of Public Health "Milan Jovanovic Batut" in order to contribute to the fight against the Coronavirus, as well as to facilitate the recovery of chronic patients who are treated in health institutions across Serbia. Having participated in a great number of humanitarian activities in the previous year, dm continues its charitable work based on a corporate philosophy that focuses on the human being. The company says that they are looking forward to providing help to those who need it the most whenever they can, so as the next activity in that regard, dm has a donation to the Safe House in Belgrade on Women's Day. With the aim of contributing to the empowerment and support of women, the company directed goods and products to this organization in the amount of RSD 500,000.
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LEADER
ADAPTABILITY AND FLEXIBLE STRATEGIES ARE CRUACIAL FOR THE FUTURE
DUŠAN ČOLOVIĆ
After one year of the COVID-19 pandemic it is obvious that economies are changed to an extent where going fully back to the ways before is not very likely. Social distancing requirements – remote work and comprehensive digitalization became a new norm. Our new daily habits, altered out of necessity, have gradually started to affect all aspects of economy, including trade and wholesale – the main topic of our recent conversation with Dušan Čolović, Sales and Delivery Director in METRO Cash & Carry Serbia. Mr Čolović believes that new market trends and habits have developed when it comes to retail, wholesale and hospitality. After several years of growth, in 2020 HoReCa sector saw a significant decline due to pandemic imposed measures. Some aspects of it though, like fast-food businesses, are showing signs of vitality. Food delivery from restaurants shows significant growth. When it comes to Trader sector, Mr Čolović points out that pandemic didn’t make such a significant impact, but shift is noticeable from Traditional Trade channels (mainly small independent trader shops) to Modern Trade, as well an increase in the influence of local retail chains. There is also a visible growth in online shopping, as well in larger store formats – customers recognizing better choice of assortment and price, and safer, more comfortable shopping during the pandemic. In the end Mr. Čolović says that METRO is a good example of how wholesalers realistically reflect changing dynamics in Trade and HoReCa sectors, due to its core business with both, but also prove high adaptability thanks to strong services and assortments aimed at end customers. “Adaptability and flexible business strategies will be some of the lessons learned in this pandemic”, concludes Mr. Čolović.
|FOCUS | TRADITION OF FAMILY-RUN COMPANIES
Many a little makes a mickle
he Germans are known as cau-
Ttious, conservative, hardworking, family people. When all these characteristics are inserted into an equation where the economy is a result, we get strong family companies - the so-called Mittelstand.
WHAT MAKES A FAMILY COMPANY?
Mittelstand is difficult to understand if you try to do so literally in Germany and the German tradition, which extends to the traditionally German-speaking area (Switzerland and Austria). In essence, they are small and medium-sized enterprises, mainly family-owned. Generally, they have up to 500 employees and revenues of up to 50 million euros. Almost 99% of all German companies come under this category. The Germans did not wait for the state
to do the job them, especially after the tragic Second World War. They took matters into their hands and created the West German economic miracle. The Germans rolled up their sleeves, at the family level, and created companies that the state "watered" to grow. The main characteristics of family companies are the following - family ownership or family corporate culture, generations of the same family working for the company, long-term focus, independence from the state and other firms, business dexterity, emotional attachment to the firm, workforce investments, flexibility, lean-model hierarchy, innovation
stemming from independence, customer focus, social responsibility and strong regional ties.
One definition says: "These companies are mostly run by classic owner-entrepreneur families (Unternehmerfamilien) who want to sustain their business by introducing a basic ideology of longevity, conservative long-term financing and operating practices." These companies are the "backbone of the German economy," as the Germans proudly point out.
EVEN SMALLER FAMILY COMPANIES
It is interesting to see how this system develops since it is quite liberal and constantly changing. The structure of family companies is changing into increasingly smaller family-run companies, even companies that have only members of the closest family or a single employee working for them. These are mostly startups that are springing up in innovative Germany, which is becoming the embodiment of the European dream. The most interesting thing is that often these startups remain at that level, i.e. do not develop into big companies. The importance of family businesses is also evident from the fact that more than 160,000 small and medium-sized enterprises with about 4.3 million employees have their association called BVMW (the Federal Association of SMEs).
HOW DO FAMILY COMPANIES
COMPETE?
Mittelstand companies are “highly focused, achieving unprecedented efficiency by designing a business model with razor-sharp attention and learning to do one thing really well”. Then, to compensate for this, they diversify internationally and enjoy large economies of scale,” say Girotra and Netessine in their analysis. Mittelstand companies benefit from the old German apprenticeship system, which provides highly skilled workers. Also, there is a "spirit of cooperation that mainly exists between employers and employees“. For Germans, stability is more important than high wages. These companies are competing hard in exports because they can achieve top-notch quality in certain niches. They are typically privately owned and are often based in small rural communities, in which they usually stay. No centralization! Most importantly, family businesses in Germany have patience. They are in no hurry. Real revenue cannot be generated in a hurry. Therefore, Mittelstand's emphasis is on long-term profitability which stands in opposition to public corporations in many countries (including German public corporations) that face quarterly or annual pressure to meet expectations. The same goes for large corporations.
Family companies in Germany are innovative, conservative, human and patient. They are a symbol of everything that the world should and could have, to be better and wealthier.
|ECONOMY | GERMANY’S ECONOMIC RESPONSE TO THE CORONAVIRUS CRISIS
Making a Protective Shield
ebruary 2020 was an idyllic
Fmonth if we do not count Lombardy and China. The economy seemed to be thriving and the virus was endemic and limited to just a few areas in the world. It looked like it would pass, like the bird or swine flu, just like all viruses in the 21st century did. And then in March, everything changed.
CAUSES OF THE CRISIS Suddenly, the whole of Europe went into lockdown, like never before. That is, like never before in the past 100 years, when, quite aptly, a Spanish flu pandemic occurred. But in Germany, problems have been showing up on the horizon even before. Namely, there was already a "German slowdown" that appeared in 2019 and early 2020. After several quarters with reduced production in the manufacturing sector, the COVID-19 crisis hit the German economy with unprecedented strength. The simultaneity of multiple supply and demand shocks are likely to be unique compared to previous economic crises.
THE FALL OF ALL FALLS
Federal-level lockdown in Germany, coupled with school and service sector closure, contact restrictions and event cancellations, was introduced in March and phased out in May 2020. The number of COVID-19 active cases, which rose to a maximum of 72,000 in early April, has since has fallen and remained well below the 10,000 case threshold since the end of
May. Even today, it is not very stable. After another peak, new restrictions were put in place. Economic activities began to have a prolonged character, and even the proverbially stingy Germans, who always have money saved, had to think about the government's response and measures to combat the consequences of the corona crisis, regardless of the EU package that was voted at the end of the year.
THE RESPONSE
The German government has quickly and decisively set up a protective shield for citizens, jobs and the economy in order to be prepared for all the social and economic effects of the coronavirus crisis. The German government has been putting together, even as we speak, an aid package of historical, unprecedented proportions. The measures contained in this protective shield are aimed at protecting human health and jobs, supporting companies and maintaining social cohesion. To finance this package, the Federation will take out loans totalling about 156 billion euro. To that end, the federal cabinet approved a budget review. Given the fiscal conservatism of the Germans and the reluctance to spend, this is an epochal move.
The federation has set up a 50-billion-euro-direct assistance programme (Soforthilfe) to support small businesses, freelancers and the self-employed. These funds will be used to provide oneoff grants to cover operating costs over three months. Grants do not have to be repaid and entail as little bureaucracy as possible. This federal programme complements other programmes already adopted by the German federal states (Bundesländer). For this reason, the authorities will be responsible for handling all applications to ensure uniform procedures.
The direct assistance program envisages the following grants: self-employed persons and companies with up to five employees will receive up to 9,000 euro, and self-employed persons and companies with up to 10 employees will receive up to 15,000 euros. The self-employed are given easier access to basic income (Grundsicherung) to ensure that they can support themselves and pay for housing. The German government has established the Economic Stabilization Fund, which is specifically aimed at large companies and is equipped to provide large assistance. The Fund complements liquidity assistance programmes already adopted as part of KfW's special programmes. The Fund includes 100 billion euro for capital measures, 400 billion euro for guarantees, and up to 100 billion euro for refinancing existing KfW special programmes, according to data from the Federal Ministry of Finance. So when you save, you save. When you spend, you spend meaningfully. Everything is analyzed and a good answer is devised. All of this was necessary for Germany to remain the embodiment of the "European dream", as well as expected from "the clear-headed nation".
|TRADITION | LEDERHOSE AND DIRNDL
ederhose and Dirndl have become
Lsynonymous with Oktoberfest celebrations, but their origins are quite humble. Lederhosen were once the traditional outfit for fieldworkers (think denim overalls), and the Dirndl was the typical uniform for housemaids.
Almost everyone attending Oktoberfest in Munich dresses in traditional Bavarian outfits (trachten), so consider taking part yourself. Dressing in authentic clothing will help you blend in better, feel less like a tourist, and makes the whole Oktoberfest experience a lot more fun. Although over 85% of Oktoberfest visitors are German-speaking, as an American or forigener you can still feel the part by dressing up like a local. This clothing guide will ensure you know how to dress for Oktoberfest in Munich. Even outside of the Oktoberfest celebrations, we have been surprised to see how many people tend to dress up to go out around Munich no matter what time of year it is. As they say, When In Rome…
