5HYLHZ
5IF +PVS OBM P G %S BN BU VS HZ 1VCMJTIFE CZ -J UFSBS Z . BOBHFS T BOE % SBNBUVSHT PG U IF "N FS JDBT
*44/
75$9(/2*8(
´'UDPDWXUJ\ DQG 5LVN LQ 3DNLVWDQµ E\ 9LFNL 6WURLFK
%22. 5(9,(:
7KH 3URFHVV RI 'UDPDWXUJ\ E\ 6FRWW 5 ,UHODQ $QQH )OHWFKHU DQG -XOLH )HOLVH 'XELQHU 5HYLHZHG E\ 0DUWLQH .HL *UHHQ 5RJHUV DQG &XUWLV 5XVVHOO
3((5 5(9,(:(' &217(17
´(PDQFLSDWLQJ 'UDPDWXUJ\ )URP 3HGDJRJ\ WR 3V\FKDJRJ\µ E\ :LOO 'DGGDULR DQG :DGH +ROOLQJVKDXV
´'LUHFWLQJ /LNH D 'UDPDWXUJ 7KH $UW RI %HLQJ D :KDOHµ E\ %HFN\ %HFNHU
7PMVNF *TTVF 4VNNFS
1)050 $)3*4501)&3 .033*4
1)050 +0)/ 8 4*440/ +3 1)050 ,&//: (3":
(',725ҋ6 127( , DP SOHDVHG WR VKDUH ZLWK WKH UHDGHUV RI 5HYLHZ RXU ODWHVW LVVXH SXEOLVKHG LQ FRQFHUW ZLWK WKH /0'$ DQQXDO FRQIHUHQFH LQ EHDXWLIXO 9DQFRXYHU %ULWLVK &ROXPELD ,Q ´'UDPDWXUJ\ DQG 5LVN LQ 3DNLVWDQ µ /0'$ 3UHVLGHQW 9LFNL 6WURLFK UHFRXQWV D MRXUQH\ XQGHUWDNHQ LQ VHU YLFH RI D QHZ SOD\ WKDW KDG LWV ZRUOG SUHPLHUH DW WKH (QEULGJH SOD\5LWHV )HVWLYDO RI 1HZ &DQDGLDQ 3OD\V DW $OEHUWD 7KHDWUH 3URMHFW LQ 0DUFK 7KH ULVN WR ZKLFK 6WURLFK DOOXGHV LQ KHU WLWOH LV ERWK DUWLVWLF DQG SK\VLFDO VRPHWKLQJ IHZ RI XV ZRUNLQJ LQ VWDEOH GHPRFUDFLHV PXVW IDFH ,W LV D VREHULQJ DQG LQVSLULQJ UHPLQGHU RI WKH SHUVRQDO ULVNV DUWLVWV PXVW WDNH ZKHQ ZRUNLQJ IRU VRFLDO MXVWLFH LQ UHSUHVVLYH VRFLHWLHV $W ORQJ ODVW ZH KDYH D FRQYHUVDWLRQDO UHYLHZ RI 6FRWW 5 ,UHODQ $QQH )OHWFKHU DQG -XOLH )HOLVH 'XELQHU·V 7KH 3URFHVV RI 'UDPD WXUJ\ $ +DQGERRN )RFXV 7KH UHYLHZHUV 0DUWLQH .HL *UHHQ 5RJHUV DQG &XUWLV 5XVVHOO SURYLGH D OLYHO\ RYHUYLHZ RI WKH ERRN IURP WKH SRLQW RI YLHZ RI WKRVH PRVW OLNHO\ WR XVH LW D WKHDWUH SURIHVVRU GUDPDWXUJ DQG DQ XQGHUJUDGXDWH VWXGHQW :H DOVR EULQJ RXU UHDGHUV WZR SHHU UHYLHZHG DUWLFOHV HDFK DGGUHVV HV GUDPDWXUJ\ LQ SURGXFWLRQ EXW IURP YHU\ GLIIHUHQW SHUVSHFWLYHV ´(PDQFLSDWLQJ 'UDPDWXUJ\ µ E\ :LOO 'DGGDULR DQG :DGH +ROOLQJ VKDXV GHFRQVWUXFWV WKH WKHRUHWLFDO XQGHUSLQQLQJV RI WKH LGHD RI GUD PDWXUJ DV SHGDJRJXH RU ´JKRVW OLJKW µ LQ 0LFKDHO 0DUN &KHPHUV· ERRN E\ WKDW WLWOH VXJJHVWLQJ WKDW GHVSLWH FODLPV WR WKH FRQWUDU\ GUD PDWXUJV RI WKLV VRUW DUH QRW HVVHQWLDO WR WKH SURGXFWLRQ SURFHVV )RO ORZLQJ -DFTXHV 5DQFLqUH DPRQJ RWKHUV 'DGGDULR DQG +ROOLQJVKDXV SURSRVH HPDQFLSDWLQJ WKH GUDPDWXUJ DQG WKH DXGLHQFH WKURXJK WKH SUDFWLFH RI ZKDW 0LFKHOH )RXFDXOW WHUPHG ´SV\FKDJRJ\ µ ,Q ´'L UHFWLQJ /LNH D 'UDPDWXUJ µ %HFN\ %HFNHU SUHVHQWV D FDVH VWXG\ RI
5HYLHZ (',725 6\GQH\ &KHHN 2·'RQQHOO 8QLYHUVLW\ RI 8WDK /$<287 (',725 'HEUD &DUGRQD &ODVVLFDO 7KHDWUH RI +DUOHP $662&,$7( (',725 -DQLQH 6REHFN %ULJKDP <RXQJ 8QLYHUVLW\ (',725,$/ %2$5' /RXLVH (GZDUGV 1RUWKZHVWHUQ 8QLYHUVLW\ '' .XJOHU 6LPRQ )UDVHU 8QLYHUVLW\ -RKQ /XWWHUELH 6WRQ\ %URRN 8QLYHUVLW\ 6\GQp 0DKRQH 8QLYHUVLW\ RI ,RZD 6KHOOH\ 2UU 6DQ 'LHJR 6WDWH 8QLYHUVLW\ *HRII 3URHKO 8QLYHUVLW\ RI 3XJHW 6RXQG -XGLWK 5XGDNRII <RUN 8QLYHUVLW\ 0LFKHOH 9RODQVN\ :DVKLQJWRQ &ROOHJH *DYLQ :LWW &HQWHUVWDJH
KHU ZRUN GLUHFWLQJ D QHZ SOD\ &RPSDxHUDV E\ .DWK\ &RXGOH .LQJ DERXW 8UXJXD\DQ ZRPHQ ZKR ZHUH ´GLVDSSHDUHGµ GXULQJ WKH GLUW\ ZDUV RI WKH V 'UDZLQJ RQ WKH LGHD RI ´WKLFN GHVFULSWLRQ µ SRSX ODUL]HG E\ DQWKURSRORJLVW &OLIIRUG *HHUW] %HFNHU GHVFULEHV KHU GUD PDWXUJLFDO DSSURDFK WR GLUHFWLQJ DW &ROXPEXV 6WDWH 8QLYHUVLW\ ,Q FORVLQJ , ZRXOG OLNH WR VKDUH D EULHI UHÁHFWLRQ RQ WKH OLIH RI WKH ODWH )UDQFD 5DPH DFWUHVV SOD\ZULJKW DQG OLIH ORQJ FROODERUDWRU RI 'DULR )R 6KH ZDV DOO WKDW DQG PRUH SURGXFHU SROLWLFDO DQG VRFLDO DFWLYLVW 6HQDWRU PRWKHU ZLIH DQG GUDPDWXUJ $OWKRXJK VKH QHYHU LGHQWLÀHG KHUVHOI DV D GUDPDWXUJ D EULHI GHVFULSWLRQ RI KHU ÀIW\ VHY HQ \HDU FROODERUDWLRQ ZLWK 'DULR )R PDNHV LW FOHDU WKDW ´GUDPDWXUJµ LV D ÀWWLQJ WLWOH (DFK GUDIW RI D )R SOD\ ZDV VXEMHFW WR KHU VFUXWLQ\ DQG FULWLTXH VKH NHSW WUDFN RI HDFK FKDQJH PDGH GXULQJ UHKHDUVDO DQG SHUIRUPDQFH RI ZKLFK WKHUH ZHUH PDQ\ DUFKLYHG PDWHULDOV IURP SURGXFWLRQ VWLOOV WR PDQXVFULSWV GLVFXVVHG WKH SOD\V ZLWK DXGL HQFHV VRPHWLPHV IRU KRXUV DIWHU D SHUIRUPDQFH DQG HGLWHG HDFK RI )R·V SOD\V IRU SXEOLFDWLRQ 5DPH FUHDWHG WKHDWUH LQ WKH VHUYLFH RI PDNLQJ D PRUH MXVW ZRUOG LQVSLULQJ ERWK WKH ORYH DQG WKH LUH RI KHU IHOORZ FLWL]HQV 6KH FRQWLQXHG KHU ZRUN HYHQ DIWHU EHLQJ NLGQDSSHG WRUWXUHG DQG JDQJ UDSHG E\ QHR )DVFLVWV LQ $W WLPHV 5DPH MRNHG WKDW LI VKH KDGQ·W EHHQ ERUQ LQWR WKH WKHDWUH SURIHVVLRQ VKH SUREDEO\ ZRXOG KDYH EHFRPH D VRFLDO ZRUNHU , GRQ·W GRXEW LW %XW KRZ OXFN\ ZH DOO ZHUH WKDW VKH ZDV XQD ÀJOLD G·DUWH DQG D GUDPDWXUJ WR ERRW
6&2 /0'$ +4 32 %R[ 3$&& 1HZ <RUN 1<
/0'$ &$1$'$ 7RURQWR 21 0 $ + &DQDGD
5HYLHZ LV SXEOLVKHG WZLFH \HDUO\ E\ /LWHUDU\ 0DQDJHUV DQG 'UDPD WXUJV RI WKH $PHULFDV $UWLFOHV VKRXOG FRQIRUP WR 0/$ IRUPDW EXW ZH DUH OHVV SLFN\ DERXW UHYLHZV PDQLIHVWRHV LQWHUYLHZV DQG RWKHU VKRUW IRUP VXEPLVVLRQV 6SHOOLQJ GLIIHUHQFHV EHWZHHQ &DQDGLDQ DQG 8 6 (QJOLVK ZLOO EH SUHVHUYHG $V SHU WKH RIÀFLDO QDPH RI RXU RUJDQL]DWLRQ ´GUDPDWXUJµ ZLOO EH WKH GHIDXOW VSHOOLQJ RI WKLV FRQWHQWLRXV WHUP EXW ZH ZLOO SUHVHUYH WKH VSHOOLQJ RI DQ\ FRQWULEXWRU ZKR SUHIHUV ´GUDPDWXUJH µ &RPSOHWH HGLWRULDO JXLGHOLQHV FDQ EH IRXQG RQOLQH DW /0'$·V ZHEVLWH ,QTXLULHV IURP SURVSHFWLYH FRQWULEXWRUV DUH ZHOFRPH $OO LQTXLULHV VKRXOG EH GLUHFWHG WR 6\GQH\ &KHHN 2·'RQQHOO HGLWRU#OPGD RUJ 5HYLHZ 9ROXPH QXPEHU 6XPPHU 7KLV ZRUN LV OLFHQVHG XQGHU WKH &UHDWLYH &RPPRQV $WWULEXWLRQ 1RQ &RPPHUFLDO 1R'HULYV 8QSRUWHG /LFHQVH 7R YLHZ D FRS\ RI WKLV OLFHQVH YLVLW KWWS FUHDWLYHFRPPRQV RUJ OLFHQVHV E\ QF QG 2XU DUWLFOHV DUH GLVFRYHUDEOH RQ (%6&2KRVW UHVHDUFK GDWDEDVHV
5HYLHZ
9LFNL 6WURLFK RQ D VWUHHW LQ /DKRUH
9LFNL 6WURLFK
1)050 $)3*4501)&3 .033*4
'UDPDWXUJ\ DQG 5LVN LQ 3DNLVWDQ , DP LQ WKH EDFNVHDW RI D QRQ GHVFULSW ZKLWH FDU ZLWK WLQWHG EDFN ZLQ GRZV LQ WKH IURQW WKHUH LV D GULYHU DQG DQ DUPHG JXDUG ZLWK DQ DVVDXOW ULÁH :H GULYH GRZQ EXV\ FLW\ VWUHHWV FRQJHVWHG ZLWK FRORUIXO PRWRU L]HG ULFNVKDZV PRWRUF\FOHV FDUU\LQJ ZKROH IDPLOLHV FDUWV GUDZQ E\ ERQ\ KRUVHV DQG RI FRXUVH RWKHU FDUV OLNH RXUV 2Q RXU ZD\ WR RXU GHV WLQDWLRQ ZH SDVV EXV\ PDUNHWV GRPHG PRVTXHV DQG EULJKWO\ OLW VLJQV LQ 8UGX DGYHUWLVLQJ QHZ IDVKLRQV MXVW LQ WLPH IRU (LG
9,&., 6752,&+ LV ,QWHULP $UWLVWLF 'LUHFWRU WKLV VHDVRQ DW $OEHUWD 7KHDWUH 3URMHFWV 6KH LV DOVR $UWLVWLF $VVRFLDWH )HVWLYDO ZKHUH VKH KDV EHHQ D PHPEHU RI WKH $UWLVWLF 7HDP IRU RYHU \HDUV 9LFNLҋ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ÀQNHO &DQDGLDQ SOD\ZULJKW SRHW DQG FUHDWLYH QRQ ÀFWLRQ ZULWHU :K\ DUH ZH WDNLQJ WKLV ULVN\ MRXUQH\ LQWR WKH FDQWRQPHQW" :KDW EURXJKW XV WR 3DNLVWDQ LQ WKH ÀUVW SODFH" :K\ D VKRZ RI FRXUVH , QHYHU H[SHFWHG WR YLVLW 3DNLVWDQ ,W ZDV QRW RQ P\ OLVW RI SODFHV , QHHG HG WR VHH ,QGHHG P\ WUDYHOV KDYH EHHQ VXUSULVLQJO\ OLPLWHG LQ JHRJ UDSK\ H[FOXVLYHO\ ZLWKLQ 1RUWK $PHULFD IRU VRPHRQH ZKR ERDUGV D ORW RI SODQHV IRU EXVLQHVV DQG SOHDVXUH ,W ZDV GUDPDWXUJ\ WKDW EURXJKW PH WR 3DNLVWDQ 7KLV 6HSWHPEHU WULS ZDV SDUW RI WKH ÀQDO GHYHORSPHQW SKDVH RI &KULVWRSKHU DQG -RQDWKDQ·V SOD\ 'XVW ZKLFK , ZDV GUDPDWXUJLQJ 5HYLHZ
WKHDWUH DQG WKXV FRQWULEXWH WR WKH VWUXJJOH IRU D VHFXODU KXPDQH MXVW DQG HJDOLWDULDQ VRFLHW\ LQ 3DNLVWDQ 7R SURPRWH WKHDWUH LQ 3DNLVWDQ E\ EOHQGLQJ WUDGLWLRQDO WKHDWUH IRUPV ZLWK PRGHUQ WHFKQLTXHV DQG WR SUR YLGH HQWHUWDLQPHQW ZKLFK KDV D VRFLDO UHOHYDQFHµ ZZZ DMRND RUJ SN
1)050 $)3*4501)&3 .033*4
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
9LFNL 6WURLFK LQ IURQW RI )DLVDO 0RVTXH LQ ,VODPDEDG
7KH GRPLQDQW IRUP RI OLYH HQWHUWDLQPHQW DUH ORZEURZ FRPHG\ VKRZV WKDW ODVW VHYHUDO KRXUV DQG IHDWXUH D UROOLQJ FDVW RI FKDUDFWHUV LQ D VRUW RI VLWFRP VW\OH QDUUDWLYH IUDPHZRUN EXW WKH IUDPH LV YHU\ ORRVH &KULV WRSKHU DQG , DWWHQGHG RQH RI WKHVH FRPHG\ VKRZV DW WKH $OKDPEUD $UWV &HQWUH LQ /DKRUH ,W VWDUWHG DW DURXQG S P ,W ZDV SHUIRUPHG HQWLUHO\ LQ 3XQMDEL DQG WKHUH ZHUH D IHZ UHRFFXUULQJ FKDUDFWHUV WKDW VHHPHG WR FDUU\ WKH VWRU\ , GLGQ·W XQGHUVWDQG WKH ODQJXDJH EXW IURP ZKDW , FRXOG GLVFHUQ WKH VWRU\ VHHPHG WR LQYROYH D FRXSOH ZKR KDG VRPH LPSRUWDQW DQG LW WXUQV RXW DEVXUGO\ VOLFN YLVLWRUV IURP .DUDFKL FRPLQJ WR WKHLU KRPH LQ /DKRUH 7KHUH ZDV D FRQVWDQW VWUHDP RI ZDON RQ WXUQV E\ RWKHU SHUIRUPHUV DQG WZLFH WKHUH ZHUH IXOO\ FORWKHG EXW YHU\ VHQVXDO EXUOHVTXH GDQFHV E\ D \RXQJ ZRPDQ 7KH FURZG ZDV PRVWO\ PHQ DQG WKHVH GDQFHV FKDUJHG WKH HQHUJ\ LQ WKH DXGLHQFH
LQ LWV SUHPLHUH DW WKH (QEULGJH SOD\5LWHV )HVWLYDO RI 1HZ &DQDGLDQ 3OD\V DW $OEHUWD 7KHDWUH 3URMHFWV LQ 0DUFK %RWK &KULVWRSKHU DQG -RQDWKDQ DUH VHDVRQHG LQWHUQDWLRQDO WUDYHOHUV 7KH\ KDG EHHQ WR 3DNLVWDQ DQG $IJKDQLVWDQ SUHYLRXVO\ WR LQWHUYLHZ IDPLOLHV DQG FRP PXQLWLHV DIIHFWHG E\ WKH FRQÁLFW LQ $IJKDQLVWDQ LQ RUGHU WR EXLOG 'XVW 7KHLU UHVHDUFK DOVR LQFOXGHG LQWHUYLHZV ZLWK WKH IDPLOLHV RI VROGLHUV DW WKH &DQDGLDQ )RUFHV %DVH LQ 3HWDZDZD 2QWDULR 7KH IRXUWK ZDOO ZDV RIWHQ EURNHQ VRPHWLPHV E\ WKH SHUIRUPHUV DQG VRPHWLPHV E\ WKH DXGLHQFH ZKR ZRXOG KHFNOH WKH SHUIRUPHUV DQG JHW 7KH VKRZ KDV EHHQ LQ GHYHORSPHQW WKURXJK &KULVWRSKHU·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·V KRPH LW ZDV DIWHU GDUN DQG WKH\ WLPH LQ 3DNLVWDQ·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ÀQDO WZR ZHHNV RI WKHLU VWD\ UHWXUQHG WR 3DNLVWDQ DIWHU KLV LPSULVRQPHQW DQG H[LOH LQ WKH PLG ·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À P\VWLF %XOOHK 6KDK FDQWRQPHQW LQ D VPDOO FDU ZLWK D ODUJH JXQ LQ WKH IURQW VHDW D SHDFHIXO SRHW KXPDQLVW DQG SKLORVRSKHU NQRZQ IRU KLV ORYH RI PXVLF DQG GDQFH DQG IRU H[SRVLQJ K\SRFULV\ 7KH SOD\ EULQJV :H KDG EHHQ LQYLWHG WR ZDWFK D UHKHDUVDO DW WKH KHDGTXDUWHUV RI $MRND WRJHWKHU HSLF VWRU\WHOOLQJ ZLWK DQ LPDJLQDWLYH DQG SK\VLFDO VWDJLQJ 7KHDWUH D WKHDWUH FRPSDQ\ EDVHG LQ /DKRUH WKDW DGYRFDWHV IRU VRFLDO IXOO RI FKRUDO PXVLF WR KRQRXU WKH 6XÀ WUDGLWLRQ RI %XOOHK 6KDK FKDQJH 7KH FRPSDQ\ LV UXQ RXW RI WKH KRPH RI LWV $UWLVWLF 'LUHFWRU 0DGHHKD *DXKDU ZKR VWDUWHG WKH FRPSDQ\ LQ ZLWK VRPH IHOORZ :KHQ ZH DUULYHG DW $MRND 7KHDWUH WKH VXQ KDG VHW DQG ZH FRXOG KHDU FXOWXUDO DFWLYLVWV GXULQJ WKH SROLWLFDOO\ DQG FXOWXUDOO\ UHSUHVVLYH UHJLPH WKHP UHKHDUVLQJ LQ WKH FRXUW\DUG RXWVLGH WKH KRXVH EXW ZH FRXOG QRW RI *HQHUDO =LD XO +DT $MRND·V PDQGDWH LV ´WR GR VRFLDOO\ PHDQLQJIXO VHH WKHP 7KHUH DUH UHJXODU DQG UROOLQJ SRZHU RXWDJHV LQ 3DNLVWDQ 5HYLHZ
2XWVLGH RI RULJLQDO VWRULHV WKDW SOD\ ZLWK WUDGLWLRQDO IRUPV $MRND KDV DOVR SURGXFHG DGDSWDWLRQV RI %UHFKW·V &DXFDVLDQ &KDON &LUFOH DQG 7KH 5HVLVWLEOH 5LVH RI $UWXUR 8L DQG ,EVHQ·V $Q (QHP\ RI WKH 3HRSOH 7KH\ FUHDWHG D VKRZ UHFHQWO\ WKDW ERUURZV IURP WKH FRPHGLHV WKH\ VKDUH WKHDWUH VSDFH ZLWK $PHULND &KDOR ´'HVWLQDWLRQ 86$µ 'XEEHG ´D VHULRXV FRPHG\ µ LW LV D VDWLULFDO WDNH RQ ´WKH ORYH KDWH UHODWLRQVKLS EH WZHHQ 3DNLVWDQ DQG WKH 86µ EHFDXVH WR TXRWH $MRND·V GHVFULSWLRQ RI WKH VKRZ RQ WKHLU ZHEVLWH ´VRPHWLPHV WKHUH DUH QDWLRQDO DQG LQWHUQD WLRQDO LVVXHV VR VHULRXV DQG VHQVLWLYH WKDW WKH\ KDYH WR EH DGGUHVVHG WKURXJK VDWLUH µ
1)050 +0/"5)"/ ("3'*/,&-
$ ÀQDQFLDOO\ LQGHSHQGHQW WKHDWUH FRPSDQ\ WKDW VRPHWLPHV ZRUNV ZLWK LQWHUQDWLRQDO 1*2V $MRND·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ÀOO WKH VHDWV DQG HYHQ TXHVWLRQ &KULVWRSKHU 0RUULV DQG 9LFNL 6WURLFK LQ IURQW RI %DGVKDKL 0RVTXH RXU UHOHYDQFH LQ WKH IDFH RI D TXLFNO\ FKDQJLQJ ZRUOG RI QHZ PHGLD LQ /DKRUH %XW ZH KDYH QR H[FXVH QRW WR EH EROG DQG ÀJKW IRU WKH YLWDO H[SHULHQFH RI EULQJLQJ SHRSOH WRJHWKHU LQ RQH SODFH WR VKDUH D VWRU\ VRPH LGHDV PDQGDWHG E\ WKH JRYHUQPHQW WR UDWLRQ HQHUJ\ 0RVW EXVLQHVVHV DQG WR IHHO VRPHWKLQJ WKHUH DUH SODFHV ZKHUH WKDW VHQVH RI FRPPXQLW\ DQG PDQ\ SULYDWH KRPHV KDYH VRPH IRUP RI JHQHUDWRU WKDW NLFNV LQ ZKHQ KXPDQLW\ LV RYHUVKDGRZHG E\ IHDU WKH SRZHU FXWV RXW $MRND·V JHQHUDWRU ZDV JLYLQJ WKHP WURXEOH VR DV RXU H\HV DGMXVWHG WR WKH GDUN ZH ZHUH OHG LQWR WKH FRXUW\DUG DQG WRRN %HIRUH ZH UHWXUQHG WR &DQDGD ZH KRVWHG D VPDOO UHDGLQJ RI 'XVW LQ RXU VHDWV QH[W WR 0HGHHKD DV VKH UHKHDUVHG HLJKW RU QLQH \RXQJ PHQ YLWLQJ VRPH IULHQGV WR KHDU WKH SOD\ LQ WKH OLYLQJ URRP RI WKH 0XPWD] WKURXJK LQWULFDWHO\ FKRUHRJUDSKHG PRYHPHQW VHTXHQFHV LQ WKH GDUN KRPH ZLWK 6DPL\D &KULVWRSKHU DQG , UHDGLQJ 2XU JXHVWV ZHUH WKH 0XPWD] IDPLO\ 0DGHHKD D ORFDO À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ÁLFW LQ 3DNLVWDQ $IJKDQLVWDQ DQG &DQDGD LW LV KRQHVW DQG XQDSROR JHWLF 7KH SOD\ LV DERXW SHUVRQDO VWUXJJOHV ZLWK YLROHQFH DQG ORVV ,W 7KHQ VXGGHQO\ WKH EOXH ZKLWH ÁXRUHVFHQW OLJKWV VWUXQJ DERYH WKH FRXUW ZDV LQVSLUHG E\ LQWHUYLHZV ZLWK SHRSOH ZKR OLYH ZLWK WKH OHJDF\ RI \DUG ÁLFNHUHG WR OLIH DQG ZH ZHUH DOO LOOXPLQDWHG , ZDV DEOH WR VHH WKH WKHVH FRQÁLFWV DQG DVNV TXHVWLRQV DERXW WKH PRUDO FRQWUDGLFWLRQV WKDW FKRUXV LQ WKHLU IRUPDWLRQ DQG 0HGHHKD VLWWLQJ LQ KHU FKDLU WKH VFULSW DFWLYH DQG SDVVLYH SDUWLFLSDWLRQ LQ WKHVH FRQÁ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ÀFXOW WR SLQ GRZQ" -RQDWKDQ YLVLWHG ZLWK WKH SHUIRUPHUV 0HGHHKD VKRZHG PH DURXQG :H KDG FRPH WR WHVW ZKDW KDG EHHQ FUHDWHG LQ &DQDGD ZLWKLQ WKH FXO WKHLU RIÀFHV IXOO RI DZDUGV DQG FRORXUIXO SXSSHWV DQG WKH DGMDFHQW PX WXUDO FRQWH[W RI 3DNLVWDQ DQG WKLV UHDGLQJ ZDV RXU FKDQFH WR VKDUH WKH VLF URRP ZLWK LWV FROOHFWLRQ RI GUXPV ODLG RXW DORQJ WKH ZDOO 7KH FRQ ZRUN DQG JHW WKDW IHHGEDFN QHFWLRQ WR WUDGLWLRQDO IRUPV RI VWRU\WHOOLQJ SRHWU\ PXVLF DQG GDQFH VHHPV WR EH LPSRUWDQW LQ FUHDWLQJ ZRUN WKDW VSHDNV WR WKH FRQWHPSRUDU\ 6R ZH SXW DVLGH WKH QHUYHV DQG UHDG WKH SOD\ WR WKDW WKRXJKWIXO DXGL OLIH RI 3DNLVWDQ E\ DOORZLQJ DXGLHQFHV WR HQFRXQWHU GLIÀFXOW PDWHULDO LQ HQFH 7KHQ ZH ZDLWHG WR KHDU ZKDW WKH\ KDG WR VD\ 7KH\ ZHUH PRYHG D WUDGLWLRQDO IRUP VKDNLQJ XS WKH VWDWXV TXR ZKLOH WHOOLQJ WKH VWRU\ LQ D WKH\ KDG VRPH GUDPDWXUJLFDO DGYLFH DQG WKH\ TXL]]HG &KULVWRSKHU IRUP WKDW PDQ\ ZRXOG UHFRJQL]H DERXW KRZ KH SODQQHG WR VWDJH WKH SOD\ WR KHOS WKH DXGLHQFH IROORZ WKH 5HYLHZ
VKLIWLQJ FKDUDFWHUV DQG ORFDWLRQV :H WDONHG DERXW ZKDW ZH QHHGHG WR ZRUN RQ EXW PRVWO\ ZH WDONHG DERXW WKH LGHDV DQG LPDJHV DQG HPR WLRQV WKDW WKH SOD\ SURYRNHG ,W ZDV RQH RI WKH PRVW PHDQLQJIXO IHHGEDFN VHVVLRQV , KDYH EHHQ D SDUW RI EHFDXVH WKHUH ZDV VRPHWKLQJ DW VWDNH IRU XV DQG IRU WKHP 7KHUH DUH D JUHDW PDQ\ VWRULHV WKDW DUH QHYHU H[SORUHG LQ 3DNLVWDQ DQG D JUHDW PDQ\ WKDW GRQ·W PDNH LW RXW RI WKDW UHJLRQ WR DQ LQWHUQDWLRQDO DXGLHQFH +DYLQJ WKH RSSRUWXQLW\ WR WHOO D IHZ RI WKRVH VWRULHV WKURXJK 'XVW DQG KHDU IURP DUWLVWV LQ 3DNLVWDQ DERXW WKHLU VWUXJJOH WR FUHDWH DUW WKDW KDV PHDQLQJ DQG DQ LPSDFW RQ WKHLU VRFLHW\ WDXJKW PH D ORW DERXW WKH JUHDW SRZHU RI ZKDW ZH GR DV VWRU\WHOOHUV 0HHWLQJ WKHVH EUDYH DUWLVWV LQVSLUHG D QHZ VHQVH RI UHVSRQVLELOLW\ DQG MR\ LQ P\ ZRUN LW ZDV ZHOO ZRUWK WKH ULVN
5HYLHZ
" DPOWFSTBUJPO BCPVU 5IF 1SPDFTT PG %SBNBUVSHZ " )BOECPPL DV GLVFXVVHG E\ &XUWLV 5XVVHOO DQG 0DUWLQH .HL *UHHQ 5RJHUV &XUWLV 5XVVHOO LV D VHQLRU LQ WKH 7KHDWUH 6WXGLHV %$ 3UR JUDP DW WKH 8QLYHUVLW\ RI 8WDK DQG D PHPEHU RI /0'$ +H ZDV WKH GUDPDWXUJ IRU $OO 0\ 6RQV %DEFRFN 7KHDWUH 6WRS .LVV 6ZHHQH\ 7RGG 7KH 'HPRQ %DUEHU RI )OHHW 6WUHHW DQG /RYH $ORQH 6WXGLR DQG ZDV 3LRQHHU 7KHDWUH &RP SDQ\Ò&#x2039;V GUDPDWXUJLFDO DVVLVWDQW ODVW VHDVRQ +H ZDV DOVR DVVLVWDQW GLUHFWRU WR 'HQQ\ %HUU\ IRU 6SULQJ $ZDNHQLQJ %DE FRFN +LV SOD\ZULWLQJ GHEXW 8WDK )UHH 7KHDWUHÒ&#x2039;V 7KH =LRQ &XUWDLQ UDQ LQ -DQXDU\ LQ 6WXGLR +H LV FR ZULWLQJ WKH 8QLYHUVLW\ RI 8WDK 0XVLFDO 7KHDWUH 3URJUDPÒ&#x2039;V VHQLRU VKRZ DQG GHYHORSLQJ D RQH SHUVRQ SHUIRUPDQFH YHUVLRQ RI 5LFKDUG ,,, +H LV VSHQGLQJ WKH VXPPHU LQ &KLOH VWXG\LQJ ZLWK -XDQ 5DGULJiQ WKH FRXQWU\Ò&#x2039;V SUH HPLQHQW SOD\ZULJKW DV ZHOO DV UHVHDUFKLQJ &KLOHDQ WKHDWUH 2WKHU GUDPDWXUJLFDO ZRUN LQFOXGHV )UDQN :LOGKRUQÒ&#x2039;V %RQQLH DQG &O\GH 8WDK 5HS
,UHODQ 6FRWW 5 $QQH )OHWFKHU DQG -XOLH )HOLVH 'XELQHU 7KH 3URFHVV RI 'UDPDWXUJ\ $ +DQGERRN 1HZEXU\SRUW 0$ )RFXV ´7KH 3URFHVV RI 'UDPDWXUJ\ HPHUJHV IURP WKH SUHVXSSRVLWLRQ WKDW GUD PDWXUJLFDO DFWV DUH FRPPLWWHG ZKHUHYHU LQGLYLGXDOV FRPH WRJHWKHU LQ DQ HQYLURQPHQW RI VXSSRUW IRU FUHDWLYH UHODWLRQVKLSV H[SOLFLWO\ LQ WKH QDPH RI FUDIWLQJ D OLYH SHUIRUPDQFH HYHQWµ ,UHODQ )OHWFKHU DQG 'XELQHU L[ 0DUWLQH .HL *UHHQ 5RJHUV $P , DOORZHG WR VWDUW E\ VD\LQJ WKDW WKHUH DUH VRPH JUHDW DXWKRUV IRU WKLV ERRN" , KDYH KDG WKH SOHDVXUH RI ZRUNLQJ ZLWK -XOLH )HOLVH 'XELQHU ZKR LV FXUUHQWO\ WKH $VVRFLDWH 'LUHFWRU RI WKH $PHULFDQ 5HYROXWLRQV SURMHFW DW WKH 2UHJRQ 6KDNH VSHDUH )HVWLYDO :KHQ \RX DGG 6FRWW 5 ,UHODQ DQG $QQH )OHWFKHU·V HGXFDWLRQDO EDFNJURXQGV LQWR WKH FR DXWKRU PL[ , KDYH KLJK KRSHV IRU ZKDW WKLV ERRN VHWV RXW WR DFFRPSOLVK
0DUWLQH .HL *UHHQ 5RJHUV LV D 5D\PRQG & 0RUDOHV 3RVW 'RFWRUDO )HOORZ LQ 7KHDWUH DW WKH 8QLYHUVLW\ RI 8WDK 0DUWLQH HDUQHG KHU 3K' DW WKH 8QLYHUVLW\ RI :LVFRQVLQ 0DGLVRQ 3ULRU WR VWXG\LQJ DW 8: 0DGLVRQ VKH HDUQHG D % $ LQ 7KH DWUH IURP 9LUJLQLD :HVOH\DQ &ROOHJH DQG DQ 0 $ LQ 7KHDWUH +LVWRU\ DQG &ULWLFLVP DW 7KH &DWKROLF 8QLYHUVLW\ RI $PHULFD +HU GUDPDWXUJLFDO SURGXFWLRQV LQFOXGH 6WDJHV 5HSHUWRU\ 7KHDWUHÒ&#x2039;V VWDJHG UHDGLQJ RI $ 6WXEERUQ :RPDQ DQG WKHLU SURGXFWLRQ RI 'ROOKRXVH &ODVVLFDO 7KHDWUH &RPSDQ\Ò&#x2039;V SURGXFWLRQV RI 0LVV -XOLH 7KH 7HPSHVW 8QFOH 9DQ\D 7KH 7ULXPSK RI /RYH $QWLJRQH &DQGLGD *KRVWV 7DUWXIIH DQG 6K\ORFN 7KH -HZ RI 9HQLFH SURGXFWLRQV RI +RPH DQG 3RUJ\ DQG %HVV DW WKH &RXUW 7KHDWUH &KLFDJR ,/ 7KH &OHDQ +RXVH DW &$7&2 &ROXPEXV 2+ 7R .LOO $ 0RFNLQJELUG 7KH $IULFDQ &RPSDQ\ 3UHVHQWV 5LFKDUG ,,, $ 0LGVXPPHU 1LJKWÒ&#x2039;V 'UHDP DQG )HQFHV DW WKH 2UHJRQ 6KDNHVSHDUH )HVWLYDO $VKODQG 25 3HUIHFW DQG 7KH &XULRXV :DON RI WKH 6DODPDQGHU DV SDUW RI WKH 0DGLVRQ 5HSHUWRU\ 7KHDWUHÒ&#x2039;V 1HZ 3OD\ )HVWLYDO DQG $ 7KRXVDQG :RUGV DV SDUW RI WKH :, :ULJKWV 1HZ 3OD\ )HVWLYDO 5HYLHZ
&XUWLV 5XVVHOO $V DQ XQGHUJUDG , KDYH KDG WKH SOHDVXUH RI ZRUNLQJ ZLWK ZHOO QR RQH \HW VR ,·P JUDWHIXO IRU WKH UHFHQW LQÁX[ RI JXLGHV VXFK DV WKLV DQG 0LFKDHO &KHPHUV· *KRVW /LJKW UHYLHZHG ODVW LV VXH 7KH\ QRW RQO\ SURYLGH OHJLWLPDF\ WR D EUDQFK VWLOO VWUXJJOLQJ IRU DFFHSWDQFH LQ WKH SURIHVVLRQDO WKHDWUH DW OHDVW LQ P\ ¶KRRG EXW WKH\ WDNH VRPH VWHSV KRZHYHU WHQWDWLYH WRZDUG UHVROYLQJ WKH FHQWUDO SDUDGR[ RI RXU SURIHVVLRQ ZH KDYH RXU ÀQJHUV LQ HYHU\ SLH RI WKHDWULFDO SUDFWLFH EXW DUH DOPRVW QHYHU WKH EDNHUV 7KLV VWUDQJH ERUGHUOLQH LQGHÀQDEOH OLPLQDO LV WKHUH D ZRUG GUDPDWXUJV ORYH PRUH" VSDFH ZH RFFXS\ ZDV D FDXVH RI JUHDW IUXVWUDWLRQ IRU PH DQG XQGRXEWHGO\ RWKHU VWXGHQWV DV , XQGHUWRRN P\ VWXGLHV EXW 7KH 3UR FHVV RI 'UDPDWXUJ\ *KRVW /LJKW DQG RWKHUV HVSHFLDOO\ DV XVHG LQ 6\GQH\ &KHHN 2·'RQQHOO·V 'UDPDWXUJ\ FRXUVH DW WKH 8QLYHUVLW\ RI 8WDK KDYH KHOSHG PH WR VHH WKDW WKDW YHU\ LQGHÀQDELOLW\ LV WKH VRXUFH RI RXU SRZHU DQG LQVLJKW DV GUDPDWXUJV ,W LV WKH VWXGHQW·V SHUVSHF WLYH WKDW , KRSH WR FRQWULEXWH WR WKLV FRQYHUVDWLRQ 0.* 5 , ÀQG LW IXQQ\ \RX PHQWLRQ WKDW LQ RXU QHFN RI WKH $PHULFDQ ZRRGV DQG SUHWW\ PXFK HYHU\ZKHUH LQ WKH 8 6 GUDPDWXUJV DUH VWLOO VWUXJJOLQJ IRU UHVSHFW LQ WKH WKHDWUH , IHHO ERRNV VXFK DV WKLV RQH DQG WKH RWKHUV \RX PHQWLRQHG DUH KHOSLQJ ZLWK RXU FUHGLELOLW\ 7KLV ERRN LV HVSHFLDOO\ KHOSIXO IRU QHZ GUDPDWXUJV EHFDXVH RI LWV GLYLVLRQ LQWR WKUHH VHFWLRQV ´3UH 3URGXFWLRQ µ ´5HKHDUVDOV µ DQG ´,Q 3URGXFWLRQ µ &5 1R TXHVWLRQ ,Q WKH LQWURGXFWLRQ WKH DXWKRUV VWDWH WKHLU LQWHQW IRU WKH ERRN 7KH\ ZULWH ´7KH 3URFHVV RI 'UDPDWXUJ\ ÀOOV D JDS E\ VSHFLÀFDOO\ FDOOLQJ SDUWLFXODU DWWHQWLRQ WR WKH P\ULDG ZD\V LQ ZKLFK DQ LQGLYLGXDO PLJKW JR DERXW GHYHORSLQJ D SURGXFWLRQ GUDPDWXUJ·V DHVWKHWLF VHQVLELOLW\ RQ WKH URDG WR FRPPLWWLQJ ¶DFWV RI GUDPDWXUJ\· LQ WKH SURGXFWLRQ SURFHVVµ [LY 7KH SXUSRVH RI DOO WKLV LV WR ´FOHDUO\ FRQQHFW DQDO\VLV WR WKH OLYH SHUIRUPDQFH HYHQW µ DV V\PEROL]HG E\ WKH FRYHU LPDJH FRQQHFWLQJ WKH EDFNVWDJH DUHD WR WKH DXGLWRULXP 7KH ERRN·V RUJDQL]DWLRQ FHUWDLQO\ OHQGV LWVHOI WR WKDW V\QWKHVLV RI WKHRU\ DQG SUDFWLFH SHUKDSV HYHQ PRUH FRQFUHWHO\ WKDQ *KRVW /LJKW 7KRXJK QRW WKH SXUSRVH RI WKLV UHYLHZ , WKLQN D ELW RI FRPSDULVRQ EHWZHHQ WKH WZR ZRXOGQ·W EH HQWLUHO\ XQZHOFRPH VLQFH WKH\ ERWK EXUVW RQ WKH VFHQH DW DERXW WKH VDPH WLPH DQG FRYHU D ORW RI WKH VDPH JURXQG , WKLQN *KRVW /LJKW H[FHOV DW WKH DQDO\VLV DQG 3URFHVV RI 'UDPDWXUJ\ DW WKH SURGXFWLRQ SURFHVV 0.* 5 , KDYH QRW UHDG *KRVW /LJKW :RXOG \RX FODULI\ WKH GLIIHU HQFH EHWZHHQ WKH WZR" &5 *KRVW /LJKW KDV D JUHDW VHFWLRQ RI WKHRUHWLFDO VXPPDULHV QHDU WKH EHJLQQLQJ WKDW ZKLOH IDU IURP H[KDXVWLYH SURYLGH D XVHIXO XQ GHUSLQQLQJ IRU WKH ZRUN ZH GR DV ´DHVWKHWLF SKLORVRSKHUV µ ZKHUHDV 7KH 3URFHVV RI 'UDPDWXUJ\ JHWV ULJKW WR WKH QLWW\ JULWW\ RI SUDFWLFDO GUDPDWXUJLFDO ZRUN *KRVW /LJKW FRYHUV D ORW RI WKH VDPH SUDFWLFDO JURXQG EXW 7KH 3URFHVV RI 'UDPDWXUJ\ GRHV D EHWWHU MRE DW HPSOR\ LQJ VSHFLÀF H[DPSOHV LQFOXGLQJ PXVLFDO WKHDWUH IURP WKH DXWKRUV· H[SHULHQFH ([WUHPHO\ XVHIXO IRU D EHJLQQLQJ SUDFWLWLRQHU ZKR MXVW ZDQWV WR ÀJXUH RXW ZKDW WKH KHOO D GUDPDWXUJ GRHV EXW SHUKDSV D ELW WRR FRQFUHWH , XQGHUVWDQG WKH GHVLUH WR IRUPDOL]H RXU ZRUN EXW 3UR FHVV RI 'UDPDWXUJ\·V VWULFW SUDFWLFDO FKURQRORJ\ GRHVQ·W HIIHFWLYHO\ DQVZHU WKH SULPH FRQXQGUXP RI DOO LQWURGXFWRU\ WH[WV WHDFKLQJ WKH FUDIW ZLWKRXW VWLÁLQJ WKH FUHDWLYH UHYROXWLRQDU\ LPSXOVH WKRXJK WKH\ DFNQRZOHGJH WKDW WKH GUDPDWXUJLFDO VHQVLELOLW\ OLHV ´DW WKH MXQF WXUH RI UHOHYDQW UHVHDUFK DQG DWWHQWLYH DSSOLFDWLRQµ DQG &KDSWHU 7KUHH ´&RQFHSWXDO )UDPHZRUNV µ WDNHV VRPH LQWHUHVWLQJ VWHSV LQ 5HYLHZ
WKDW GLUHFWLRQ 7RJHWKHU WKRXJK *KRVW /LJKW DQG 7KH 3URFHVV RI 'UDPDWXUJ\ PDNH XS D JUHDW LQWURGXFWRU\ WH[W 0.* 5 <RX EULQJ XS D JRRG SRLQW DERXW KRZ WR XQGHUVWDQG WKH XVH IXOQHVV RI 7KH 3URFHVV RI 'UDPDWXUJ\ ,W LV DQ LQWURGXFWRU\ WH[W DQG WKH DXWKRUV LGHQWLI\ WKH VSHFLÀF DXGLHQFH IRU WKLV ERRN³SHRSOH LQWHUHVWHG LQ WKH ´SURFHVV LQKHUHQW LQ FRPSOHWLQJ WDVNV WKDW XVXDOO\ IDOO XQGHU WKH SXUYLHZ RI D GHVLJQDWHG SURGXFWLRQ GUDPDWXUJµ [L )RU WKDW UHDVRQ WKH ´KDQGERRN QHVVµ RI LW GLG QRW ERWKHU PH $V ZLWK DOO DUW IRUPV WKHUH LV RQO\ VR PXFK D ERRN FDQ WHDFK \RX , SUHIHU LW ZKHQ D ERRN JLYHV PH WKH EDVLFV DQG WKHQ DOORZV PH WR ÀJXUH RXW WKH UHVW 2Q DQRWKHU QRWH , WKLQN WKH RUJDQL]DWLRQ DQG WKHRUHWLFDO EDVH IRU WKLV ERRN ZDUUDQWV VRPH FRQWLQXHG GLVFXVVLRQ 7KH PDMRULW\ RI WKH WH[W LV EDVHG RQ ZKDW WKH DXWKRUV KDYH H[SHULHQFHG DV GUDPDWXUJV )RU H[ DPSOH WKH EDVLF EUHDNGRZQ RI ´UHVHDUFK GUDPDWXUJLFDOµ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´FROOHFWLQJ >WKHLU@ WKRXJKWV LQ >WKRVH@ FDWHJRULHV UHPDLQV D SDUW RI >WKHLU@ SURIHVVLRQDO SUDFWLFH DQG RIWHQ VKDSHV WKH FRQWDFW >WKH\@ PDNH ZLWK D GLUHFWRUµ 7KH\ PRYH IURP WKHUH WR WDONLQJ SRLQWV 0.* 5 2Q DQRWKHU QRWH , GLG DSSUHFLDWH WKH H[HUFLVHV WKDW PD\ EH XVHG LQ D FODVVURRP VHWWLQJ WR KHOS HPHUJLQJ GUDPDWXUJV ZLWK WKH FRQYHUVDWLRQV WKDW PXVW RFFXU EHWZHHQ GUDPDWXUJ DQG GLUHFWRU , DOVR ORYH WKH FDXWLRQ WKH DXWKRUV SODFH RQ KRZ WKHVH LQLWLDO PRPHQWV RI FRQWDFW ZLWK WKH GLUHFWRU DUH FUXFLDO LQ GHWHUPLQLQJ WKH UROH WKH GUDPDWXUJ ZLOO KDYH DV SDUW RI WKH DUWLVWLF SURFHVV &5 ,Q &KDSWHU 7KUHH , ZDV LQLWLDOO\ GXELRXV RI WKH DXWKRUV· DVVHU WLRQ WKDW ´VRPH RI WKH PRVW LQWHUHVWLQJ PRPHQWV LQ RXU RZQ ZRUN DUH ZKHQ ZH UHDOL]H WKDW D WKHRUHWLFDO IUDPHZRUN LV D SURYHUELDO GHDG HQG IRU WKH OLYH SURGXFWLRQ DQG WKDW ZH PXVW HPEUDFH DQRWKHU ZD\ RI VHH LQJµ 7KHQ , DVVLVWHG RQ D SURGXFWLRQ LQ ZKLFK WKH GLUHFWRU KDG DEVROXWHO\ QR LQWHUHVW LQ WKHRU\ EDVHG UHDGLQJV RI WKH WH[W DQG UHDO L]HG KRZ XVHIXO WKH VKRUW ´:D\V RI 6HHLQJ ZLWKRXW 7KHRU\µ VHFWLRQ LV 7KH DXWKRUV· DIÀUPDWLRQ WKDW RQH PXVW OHDUQ WR ´DUWLFXODWH ERWK ZKDW LV NQRZQ DQG ZKDW LV VHHQµ KHOSHG PH PRGLI\ P\ DSSURDFK WR WKH SURGXFWLRQ LQ ZD\V WKDW , KRSH ZHUH EHQHÀFLDO WR ERWK WKH SOD\ DQG P\ UHODWLRQVKLS ZLWK WKH GLUHFWRU :KLFK EULQJV XV WR 3DUW 5H KHDUVDOV +RZ ZHOO GLG WKLV VHFWLRQ MLYH ZLWK \RXU H[SHULHQFH" 0.* 5 , DP OLYLQJ 3DUW DV ZH FRQYHUVH DERXW WKLV ERRN SUHSDU LQJ VHYHUDO WH[WV IRU SURGXFWLRQ ULJKW QRZ DQG D FRXSOH RI WKLQJV WKH\ VDLG UHVRQDWHG ZLWK PH ´>7@KHUH LV DEVROXWHO\ QRWKLQJ VDFUHG DERXW D JLYHQ FODVVLFDO WH[Wµ DQG ´7KH SURGXFWLRQ GUDPDWXUJ PXVW UHDG WKH WH[W ZLWK WKUHH WKLQJV LQ PLQG WLPH WHQVLRQ DQG WRQHµ 7KH IRUPXOD WKH\ SURYLGH WR KHOS JDXJH WKH WLPH RI WKH VFULSW \RX KDYH FXW LV YHU\ KHOSIXO ,Q DGGLWLRQ WKH\ VWUHVV WKH LPSRUWDQFH RI
KDYLQJ FRQYHUVDWLRQV ZLWK WKH GLUHFWRU WR DVVHVV WKH WRQH ZKLFK XO QHZ GUDPDWXUJV DQG SURYLGLQJ VROLG DQG WLPH WHVWHG DGYLFH PLJKW EH WLPDWHO\ SUHYHQW GUDPDWXUJV IURP ZDVWLQJ WLPH ZLWK ZRUN WKDW WKH\ KHOSIXO 7KDW EHLQJ VDLG , GR UHDOL]H WKDW VRPH RI WKH TXHVWLRQV WKH\ SRVHG LQ &KDSWHU )LYH IRU QHZ SOD\ GHYHORSPHQW FRXOG EH DOWHUHG KDYH WR UH GR RU GLGQ·W KDYH WR GR LQ WKH ÀUVW SODFH IRU XVH LQ SRVW VKRZ GLVFXVVLRQV 7KH EHVW DGYLFH WKH\ JLYH LV WR /,67(1 FRQVWDQWO\ DQG FRQVLVWHQWO\ 7KH JXLGHOLQHV OLVWHG LQ WKH ´WDEOHZRUNµ VHFWLRQ RI WKLV VHFWLRQ RI WKH &5 , KDGQ·W WKRXJKW DERXW WKDW , DOVR OLNH KRZ WKH\ HPSKDVL]H WKH ERRN ZLOO VDYH DQ\ QHZ RU ROG GUDPDWXUJ IURP PDNLQJ PLVWDNHV LPSRUWDQFH WKDW WKH GUDPDWXUJ DYRLG ´FRPLQJ RII DV D VWXII\ SURIHV WKDW ZLOO QHJDWLYHO\ LPSDFW D UHKHDUVDO H[SHULHQFH 0\ SHUVRQDO ID VRULDO NQRZ LW DOOµ 7KH\ JR RQ WR VD\ WKDW ´>W@KH PDWHULDOV YRULWH" ´%H DEOH WR UHVSRQG LQ KXPDQ WHUPV WKDW SHUIRUPHUV FDQ SOD\ JHQHUDWHG RXJKW WR EH IXOO RI KLJK LGHDV SUHVHQWHG LQ DFFHVVLEOH ZD\V LQ D VFHQHµ , DOVR ÀQG WKHLU VHFWLRQV RQ 3URGXFWLRQ 0HHWLQJV WR WKHDWUH SDWURQV RI DOO DJHV DQG OHYHOV RI WKHDWULFDO XQGHUVWDQGLQJ µ 5HDG 7KURXJKV DQG 5XQV KHOSIXO IRU QHZ GUDPDWXUJV KDYLQJ HDUOLHU LQ WKH FKDSWHU VDLG WKDW ´WKH FRQWHQWV RI WKH >SUR JUDP QRWH@ FDQ FRQIXVH WKH ORJLF RI D OLYH SHUIRUPDQFH LI LW LV WRR 'R \RX KDYH DQ\ QHZ SOD\ H[SHULHQFH" :KDW GR \RX WKLQN DERXW FHUHEUDO GLVMRLQWHG RU RWKHUZLVH MDPPHG ZLWK MDUJRQµ 7KLV LV &KDSWHU )LYH" JRRG IRU PH DV P\ ZULWLQJ WHQGV WR WKH GLVMRLQWHG DQG MDUJRQ VWXIIHG , GR KDYH D TXHVWLRQ WKRXJK KRZ WKH KHOO DP , VXSSRVHG WR NQRZ &5 &KDSWHU )LYH FKDUDFWHULVWLFDOO\ FXWV ULJKW WR WKH KHDUW RI WKH ZKDW DQ HLJKWK JUDGH UHDGLQJ OHYHO LV" ,W·V EHHQ LQGHFLSKHUDEOH PDWWHU FRPPLVVLRQLQJ VROLFLWLQJ DQG HYDOXDWLQJ VFULSWV ZRUNVKRS \HDUV VLQFH HLJKWK JUDGH SLQJ UHDGLQJV HWF %XW LW VHHPV WR VNLP ULJKW RYHU ZKDW , ZRXOG DV VXPH WR EH WKH PRVW LPSRUWDQW SDUW RI QHZ SOD\ GUDPDWXUJ\ DYRLG 0.* 5 6DPH KHUH 7KH ODVW FKDSWHU LQ WKLV ERRN LV D UDWKHU OHQJWK\ LQJ SUHVFULSWLYH WHQGHQFLHV 7KDW VXFK D YLWDO LGHD UHFHLYHV RQO\ D FDVH VWXG\ RI D SURGXFWLRQ RI %LOR[L %OXHV SHUIRUPHG LQ DQ HGXFDWLRQDO SDJH DQG D KDOI VSHDNV , WKLQN WR ZKDW ZH·YH DOUHDG\ GLVFXVVHG VHWWLQJ , OLNHG WKDW WKH\ SURYLGHG D FDVH VWXG\ DOWKRXJK D VPDOO SDUW RI DERYH QDPHO\ WKH DXWKRUV· GHVLUH WR SURYLGH D EDVLF KDQGERRN DERXW PH ZLVKHV WKDW WKH\ KDG LQFOXGHG WZR³RQH LQ DQ HGXFDWLRQDO VHWWLQJ WKH IXQGDPHQWDOV RI GUDPDWXUJ\ , GRQ·W NQRZ , JXHVV ,·P MXVW DVN DQG DQRWKHU RQH LQ D SURIHVVLRQDO VHWWLQJ , ÀQG WKDW GUDPDWXUJ\ LQ WKHVH LQJ WRR PXFK ZKLOH WKH ERRN LV XQGRXEWHGO\ XVHIXO DQG FOHDU LW VLWXDWLRQV FDQ EH H[WUHPHO\ GLYHUJHQW , HQMR\HG WKDW WKHLU FDVH VWXG\ LV GLGQ·W OLJKW DQ\ ÀUHV LQ PH WKH ZD\ WKH EHVW LQWURGXFWRU\ WH[WV FDQ PRVWO\ WKH LGHDO H[SHULHQFH EXW WKHQ ZKDW KDSSHQV WR D \RXQJ GUD 7R EH KRQHVW LW PDNHV GUDPDWXUJ\ VHHP NLQGD ERULQJ ZKLFK , NQRZ PDWXUJ ZKHQ IDFHG ZLWK D OHVV WKDQ LGHDO H[SHULHQFH" WR QRW EH WKH FDVH 0D\EH , QHHG WR JHW P\ )XFKV FRORUHG JODVVHV RQ &5 2QH RI WKH WKLQJV ,·YH UHDOO\ DSSUHFLDWHG DERXW 7KH 3URFHVV RI DQG VWRS SLQLQJ DZD\ IRU ZKDW WKH ERRN LVQ·W 'UDPDWXUJ\ LV WKH LQFOXVLRQ RI DFDGHPLF GUDPDWXUJ\ LQ WKH GLVFXV 0.* 5 <RXU ´)XFKV FRORUHG JODVVHVµ" , IHHO DV WKRXJK ZH KDYH VLRQ VRPHWKLQJ WKDW ZDV DOO EXW PLVVLQJ LQ *KRVW /LJKW 7KHLU QRGV EHFRPH WKH ´6LVNHO DQG (EHUWµ RU WKH ´6WDWOHU DQG :DOGRUIµ RI ERRN WKURXJKRXW WR PXVLFDO DQG FODVVLFDO GUDPDWXUJ\ KDYH DOVR EHHQ KHOS UHYLHZV IXO VR , DJUHH PRUH FDVH VWXGLHV ZRXOG EH ZHOFRPH %XW \RX·YH KLJKOLJKWHG D UHDO FRQXQGUXP 6KRXOG IXWXUH GUDPDWXUJV EH VKRZQ , WKLQN \RX DUH ULJKW 7H[WERRNV GR KDYH WR WDNH WKDW W\SH RI WRQH DQ LGHDO VLWXDWLRQ RU D PRUH UHDOLVWLF RQH" , FDQ HQYLVLRQ JUHHQ GUD 6RPH RI WKDW WRQH GHULYHV IURP WKH IDFW WKDW WKHUH DUH QRW PDQ\ ERRNV PDWXUJV JHWWLQJ IUXVWUDWHG DQG JLYLQJ XS ZKHQ D VLWXDWLRQ LVQ·W LGHDO WKDW GHDO ZLWK OD\LQJ RXW ZKDW ZH GR DV GUDPDWXUJV 6RPHRQH KDV WR EXW RQ WKH RWKHU KDQG KRZ WR LQVSLUH WKH ULVLQJ JHQHUDWLRQ WR VWULYH WR ZLWK D WRQH RI DXWKRULW\ LQ RUGHU IRU WKH FRQYHUVDWLRQ WR HYROYH DQG FUHDWH WKH W\SH RI VLWXDWLRQ LQ ZKLFK SUDFWLFDO GUDPDWXUJ\ FDQ UHDOO\ JURZ , IHHO WKDW WKLV ERRN LV WKH GUDPDWXUJ\ HTXLYDOHQW RI WH[WV VXFK ÁH[ LWV PXVFOHV DQG IRPHQW D PHDQLQJIXO G\QDPLF WKHDWUH" :KDW DV $ 6HQVH RI 'LUHFWLRQ DQG $Q $FWRU 3UHSDUHV LQ WKDW LW ZLOO HYHQWX ,·P OHIW ZLWK DW WKH HQG LV WKH IHHOLQJ WKDW WKH SURIHVVLRQ WKRXJK DOO\ EH ORRNHG XSRQ DV D VHPLQDO WH[W IRU LWV VLPSOLFLW\ DQG FODULW\ WLPH KRQRUHG DQG WKH UHVXOW RI GHFDGHV RI KDUG ZRUN E\ LWV SLRQHHUV LV UHDOO\ MXVW LQ LWV LQIDQF\ WKHUH LV PXFK OHIW WR GHÀQH 0D\EH WKLV &KDSWHU 6L[ LV RI JUHDW LQWHUHVW WR PH HVSHFLDOO\ VLQFH WKHUH KDV EHHQ ERRN LV PRUH UHYROXWLRQDU\ WKDQ , KDG UHDOL]HG D KXJH GULYH DW WKH 8QLYHUVLW\ RI 8WDK WR ZRUN RQ ´2XWUHDFK DQG (GXFDWLRQ µ , DSSUHFLDWH KRZ WKH ERRN ZDONV WKURXJK VHYHUDO ZD\V 0.* 5 &RPH WR WKH GDUN VLGH &XUWLV :H KDYH FRRNLHV -XVW NLG LQ ZKLFK EXGGLQJ GUDPDWXUJV PD\ DFFRPSOLVK WKLV WDVN GLQJ QRW DERXW WKH FRRNLHV WKRXJK ZH GR KDYH WKRVH 7KH VDPSOH WDEOH RI FRQWHQWV IRU D VWXG\ JXLGH LV D JUHDW ZD\ RI LO /DVW EXW QRW OHDVW , WKRXJKW WKHLU QRG LQ &KDSWHU (LJKW WR WKH DJH OXVWUDWLQJ WKH W\SHV RI PDWHULDOV VFKRROV PLJKW QHHG WR SUHSDUH WKHLU ROG TXHVWLRQ ´6R ZKDW LV QH[W"µ ZDV JUHDW , DP VXUH PDQ\ EXGGLQJ VWXGHQWV WR VHH D VKRZ , DOVR HQMR\HG WKH ZD\ WKLV FKDSWHU DGGUHVVHG GUDPDWXUJV KDYH ZRQGHUHG KRZ WR JHW VWDUWHG :KHWKHU \RX ZDQW VHYHUDO W\SHV RI GUDPDWXUJLFDO ZULWLQJ VXFK DV WKH SURJUDP QRWH WKH WR OHDUQ PRUH DERXW GUDPDWXUJ\ EHFRPH LQYROYHG LQ GUDPDWXUJ\ DW LQWHUYLHZ DQG WKH QHZVOHWWHU DUWLFOH 7KLV VHFWLRQ DOORZV GUDPDWXUJV D VFKRRO RU ÀQG DQ LQWHUQVKLS , EHOLHYH WKLV ERRN SURYLGHV VRPH WR ÀQG D IRUPDW WKDW IHHOV WKH PRVW FRPIRUWDEOH WR WKHP LI WKH\ KDYH VLPSOH LGHDV WR EHJLQ WKDW SURFHVV D FKRLFH LQ WKH W\SH RI SURJUDP PDWHULDO WKH\ PXVW ZULWH RU DW OHDVW XQGHUVWDQG WKH EDVLFV RI ZKDW WKH\ QHHG WR GR IRUPDW DQG VW\OH &5 +HDU KHDU $QG QRZ WKDW ZH·YH JRW VRPH JRRG WH[WV WKDW RXW ZLVH LI WKH\ GR QRW KDYH D FKRLFH 7KH DXWKRUV DOVR DGGUHVV OREE\ OLQH WKH EHJLQQLQJ RI WKH MRXUQH\ ZH·UH UHDG\ IRU WKH %LJ 2QH WR GLVSOD\V DQG P\ SHUVRQDO IDYRULWH SUH DQG SRVW VKRZ GLVFXVVLRQV FRPH DORQJ DQG EORZ WKH GRRUV ZLGH RSHQ DQG OLJKW WKH WKHDWULFDO +RZHYHU WKH RQH WKLQJ , IHHO LV PLVVLQJ IURP WKLV VHFWLRQ LV DQ H[ ZRUOG RQ ÀUH , FDQ·W ZDLW WR UHDG LW %XW LQ WKH PHDQWLPH FRRNLHV DPSOH RU WZR RI TXHVWLRQV D GUDPDWXUJ PLJKW XVH GXULQJ SRVW VKRZ GLVFXVVLRQV 3RVW VKRZ WDONV WHQG WR LQVWLOO IHDU LQWR WKH KHDUWV RI 0.* 5 , KDYH D VWDVK LQ P\ RIÀFH , FDQ VKDUH 5HYLHZ
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
5HYLHZ
,QWURGXFWLRQ ,Q RQH RI WKH PXOWLSOH GUDPDWXUJ\ KDQGERRNV SXEOLVKHG UHFHQWO\ 0LFKDHO 0DUN &KHPHUV SUHVHQWV D YLYLG PHWDSKRU IRU XQGHUVWDQGLQJ WKH LGHQWLW\ RI WKH GUDPDWXUJ WRGD\ $ JKRVW OLJKW LV LQ UHDOLW\ QRWKLQJ PRUH WKDQ D OLJKWLQJ LQVWUX PHQW OHIW LOOXPLQDWHG LQ WKH PLGGOH RI WKH VWDJH ZKHQ QR RQH LV ZRUNLQJ LQ WKH WKHDWHU 6R LQGLVSHQVDEOH DUH JKRVW OLJKWV WKDW LW LV QRZ DOPRVW LPSRVVLEOH WR Ã&#x20AC;QG D WKHDWHU DQ\ZKHUH LQ WKH ZRUOG ZLWKRXW RQH > @ 7KH JKRVW OLJKW·V ORQHVRPH H[LVWHQFH LV GHGLFDWHG WR SURWHFWLQJ XV MXVW LQ FDVH ZH ZLVK WR YHQWXUH LQWR WKH GDQJHURXV VSDFH 7KH JKRVW OLJKW LV D EHDFRQ LQ D ZRUOG RI GDUNQHVV ZKHUH D VLQJOH VWHS VD\ RII WKH VWDJH LQWR WKH SLW RU RII D FDWZDON FRXOG EH WKH ODVW PLVWDNH RQH HYHU PDNHV )RU &KHPHUV WKH GUDPDWXUJ LV WKLV LQGLVSHQVLEOH JKRVW OLJKW GHGLFDW HG WR SURWHFWLQJ DXGLHQFHV DQG LOOXPLQDWLQJ WKH GDUNQHVV RI GDQJHU RXV FRQFHSWXDO H[SHULHQWLDO DHVWKHWLF WHUULWRULHV ,W LV DV LI ZLWKRXW WKH Ã&#x20AC;JXUH RI WKH GUDPDWXUJ WKHDWUH VLPSO\ FRXOG QRW IXQFWLRQ 7KH ZHLJKW SODFHG RQ WKH QHFHVVLW\ RI WKH GUDPDWXUJ LV SHUKDSV QRW VXUSULVLQJ JLYHQ WKH KLVWRULFDO UHODWLRQVKLS EHWZHHQ GUDPDWXUJV DQG WKH LQVWLWXWLRQ RI WKHDWUH 6LQFH *RWWKROG (SKUDLP /HVVLQJ·V +DP EXUJLVFKH 'UDPDWXUJLH WKH GUDPDWXUJ KDV EHHQ DEOH WR FDUYH RXW D QLFKH IRU KLPVHOI ZLWKLQ D FHUWDLQ W\SH RI WKHDWUH (YHQ QRZ ZKHQ UH JLRQDO WKHDWUHV KDYH GLVVROYHG WKH PRQRSRO\ RI VWDWH VSRQVRUHG WKHDWUL FDO IDUH VXFK DV WKRVH LQ *RWKD 9LHQQD DQG 0DQQKHLP GXULQJ /HVV LQJ·V GD\ WKH GUDPDWXUJ KDV EHHQ DEOH WR HVWDEOLVK D SRVLWLRQ DORQJVLGH WKH OLWHUDU\ PDQDJHU DV SDUW RI WKH DUWLVWLF WHDP GHGLFDWHG WR PRXQWLQJ SURGXFWLRQV 7UDLQLQJ IRU WKHVH SRVLWLRQV EHJLQV ZLWKLQ WKH KDOOV RI WKH DFDGHP\ ZKHUH PRUH DQG PRUH WKHDWUH GHSDUWPHQWV KDYH DGRSWHG SURIHVVLRQDO VWUXFWXUHV IRU WKHLU PDLQVWDJH VHDVRQV ZKLFK LQ WXUQ KDV UHTXLUHG DGRSWLQJ WKH GUDPDWXUJ DV DQ LQWHJUDO SDUW RI WKH SURGXFWLRQ WHDP ,QGHHG RQFH WKH GUDPDWXUJ PRYHV IURP WKH WUDLQLQJ JURXQG WR
DWUH VFKRODUV SUDFWLWLRQHUV FRPPLWWHG WR GUDPDWXUJ\ ZH DUH GLVFRQ FHUWHG E\ WKLV DVVHUWLRQ RI WKH GUDPDWXUJ·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ÀUVW VWHS WRZDUG WKDW UHLPDJLQLQJ ,Q WDNLQJ FRQWLQXH WR GLVFXVV GUDPDWXUJ\ ZLWK RWKHU WKHDWUH VFKRODUV DQG SUDF WKLV VWHS ZH ZLOO ÀUVW SUHVHQW WKH FXUUHQW SRSXODU FRQÀJXUDWLRQ RI WKH WLWLRQHUV DQG H[SORUH WKH GUDPDWXUJ\ WUDLQLQJ OLWHUDWXUH WKDW ZRUNV SXUSRVH DQG IXQFWLRQ RI D GUDPDWXUJ 6HFRQG ZH ZLOO YLVLW WKH UHFHQW KDUGHVW WRZDUG FDOFLI\LQJ WKH SRVLWLRQ RI WKH GUDPDWXUJ ZH EHFRPH HGXFDWLRQDO WKHRU\ RI -DFTXHV 5DQFLqUH WR GHPRQVWUDWH KRZ WKH FXUUHQW LQFUHDVLQJO\ FRQYLQFHG WKDW WKH DUJXPHQW IRU WKH QHFHVVLW\ RI D GUD FRQÀJXUDWLRQ RI D GUDPDWXUJ DFWXDOO\ VWXOWLÀHV UDWKHU WKDQ HPDQFLSDWHV PDWXUJ LQ D WUDGLWLRQDO WKHDWUH HQYLURQPHQW KDV QRW EHFRPH VWURQJHU SURGXFWLRQ FRPSDQLHV DQG WKHLU DXGLHQFHV $QG WKLUG ZH ZLOO WUDYHUVH EXW KDV LQ IDFW EHFRPH ZHDNHU 7KH LPSHWXV IRU WKLV DUJXPHQW FRPHV WKH SKLORVRSKLFDO WHUUDLQ RI SV\FKDJRJ\ DV FKDUWHG E\ 0LFKHO )RXFDXOW IURP D SKLORVRSKLFDO LQTXLU\ LQWR WKH SUDFWLFH RI GUDPDWXUJ\ DQG D DQG RIIHU DQ DOWHUQDWLYH YLVLRQ RI GUDPDWXUJ\ LQ WKH WZHQW\ ÀUVW FHQWX KLVWRULRJUDSKLFDO DZDUHQHVV WKDW LQWHOOLJLELOLW\ DOZD\V EHOLHV D ODWHQW U\ WUDFHDEOH WKURXJK WKH ZRUN RI %RMDQD &YHMLF &RUQHUVWRQH 7KHDWHU XQFHUWDLQW\ WKH PRUH OXPLQRXV WKH JKRVW OLJKW WKH GHHSHU WKH GDUN WKH 5XGH 0HFKDQLFDOV $QQH %RJDUW DQG 0DWWKHZ *RXOLVK QHVV $ GLDOHFWLFDO DWWXQHPHQW WR WKH GUDPDWXUJ·V QHFHVVLW\ ZLWKLQ WKH SUDFWLFH RI WKHDWUH UHTXLUHV WKDW ZH DOORZ IRU WKH SRVVLELOLW\ WKDW 7KH 'UDPDWXUJ DQG WKH 6FKRROPDVWHU WKH GUDPDWXUJ DV LW KDV EHHQ LPDJLQHG E\ &KHPHUV PD\ EH FRP SOHWHO\ XQQHFHVVDU\ %HWZHHQ WKH SROHV RI QHFHVVLW\ DQG VXSHUÁ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ÀHOGV RI GDQFH WKHDWUH DQG SHUIRUPDQFH WHQ RFFXUV EHWZHHQ WZR GLIIHUHQW GUDPDWXUJLFDO VHQVLELOLWLHV WKH VWXGLHV ,W LV FOHDU IURP WKHVH LQWHUYHQWLRQV WKDW WKH GUDPDWXUJ QRZ GRHV GUDPDWXUJ\ HPSOR\HG E\ D SURGXFWLRQ FRPSDQ\ LQ LWV FUHDWLRQ RI D PXFK PRUH WKDQ FUHDWLQJ LQIRUPDWLRQ SDFNHWV IRU DXGLHQFHV GHVLJQ SLHFH DQG WKH GUDPDWXUJ\ LQWHUSUHWHG E\ DQ DXGLHQFH LQ LWV UHFHSWLRQ LQJ OREE\ GLVSOD\V FRDFKLQJ WKH GLUHFWRUV DQG DFWRUV GXULQJ UHKHDUVDO RI D SLHFH 8QVDWLVIDFWRU\ WKHDWUH H[SHULHQFHV DUH RIWHQ UHGXFHG WR DQG SDUWLFLSDWLQJ LQ SOD\ VHOHFWLRQ %RMDQD .XQVW IRU H[DPSOH KDV WKH JDS SURGXFHG E\ WKLV PLVDOLJQPHQW EXW DV LV DOVR FRPPRQO\ GLVVHFWHG WKH WURSH RI WKH GUDPDWXUJ DV ´FRDFKµ DQG FKDOOHQJHG XV WR WKH FDVH WKH WZR GLIIHUHQW VLGHV RI WKH SURGXFWLRQ³FRPSDQ\ DQG XQGHUVWDQG WKH GUDPDWXUJ·V SURIHVVLRQ QRW DV VRPHWKLQJ FRQVWUXFWHG DXGLHQFH³IDXOW HDFK RWKHU IRU WKH SUHVHQFH RI WKH JDS $XGLHQFHV DURXQG DHVWKHWLF HOXVLYHQHVV GHGXFHG IURP WKH GUDPDWXUJ·V SHUSHWXDO EODPH FRPSDQLHV IRU SUHVHQWLQJ D FRQFHSWXDOO\ LQFRPSOHWH SLHFH VKLIWLQJ EHWZHHQ WKHRUHWLFDO DQG SUDFWLFDO FRQFHUQV EXW DV D IDFLOLWDWRU DQG FRPSDQLHV EODPH DXGLHQFHV IRU D ODFN RI WKHDWUH OLWHUDF\ 7KH ZKR ´HPERGLHV D NLQG RI DIIHFWLYH SUR[LPLW\µ &KULVWLDQ %LHW IRU GUDPDWXUJ KDV EHHQ JLYHQ WKH UHVSRQVLELOLW\ RI FORVLQJ WKLV JDS LLL DQRWKHU GRHV QRW HYHQ QHFHVVDULO\ FRQQHFW GUDPDWXUJ\ WR WKH SUDFWLFH RI DQ LQGLYLGXDO GUDPDWXUJ ,QVWHDG GUDPDWXUJ\ IXQFWLRQV DV D IUDPH ,Q WKHLU EHVW HIIRUWV WR GR WKLV GUDPDWXUJV ZRUN RQ ERWK VLGHV RI WKH WKDW ELQGV WKH WKHDWULFDO HYHQW ZLWKLQ D VSHFLÀF WLPH DQG SODFH WKHUHE\ HTXDWLRQ 7KH GUDPDWXUJ SHUIRUPV D VHULHV RI WDVNV IRU WKH SURGXFWLRQ PDNLQJ SRVVLEOH D WKHDWULFDO ´DSSHDUDQFH µ DQ ´DHVWKHWLF SROLWLFDO RS FRPSDQ\ WR KHOS WKHP SUHVHQW WKH PRVW FRPSOHWH SLHFH SRVVLEOH DQG HUDWLRQµ WKDW ´UHSUHVHQWV IRU DOO SUHVHQW D VRFLDO HYHQW DNLQ WR D JDWKHU WKHQ SHUIRUPV DQRWKHU VHULHV RI WDVNV LQ RUGHU WR SURYLGH WKH DXGLHQFH ZLWK WKH KHUPHQHXWLFDO IUDPHZRUNV LW QHHGV LQ RUGHU WR UHFHLYH WKH SLHFH LQJ DQG QHFHVVDULO\ SHUWDLQLQJ WR WKH SROLWLFDOµ LL SURSHUO\ $V D PHPEHU RI WKH SURGXFWLRQ FRPSDQ\ WKH GUDPDWXUJ SR &UHDWLYH SKLORVRSKLFDO WKHRULHV VXFK DV .XQVW·V DQG %LHW·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ÀJXUHV RI WKH GUDPDWXUJ DQG WKH PDVWHU RI WKHDWULFDO RI WKH SURVFHQLXP DUFK WKH GUDPDWXUJ UH RUJDQL]HV PXFK RI WKLV VDPH NQRZOHGJH RIWHQ IXQFWLRQV DV D NLQG RI DUPRU WKDW UHVWULFWV WKH Á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
L
,Q DGGLWLRQ WR &KHPHUV· ERRN WZR RWKHU ´KDQGERRNVµ IRU GUDPDWXUJ\ KDYH EHHQ SXEOLVKHG LQ WKH 8 6 LQ 6HH %URZQ DQG ,UHODQ )OHWFKHU DQG 'XELQHU LL )RU RWKHU FUHDWLYH WKHRULHV RQ WKH VKDSH RI GUDPDWXUJ\ LQ WRGD\·V ZRUOG RI GHYLVHG WKHDWUH DQG VLWH VSHFLÀF SHUIRUPDQFH VHH %RHQLVFK (FNHUVDOO 6KLQWDUR $NLUD DQG 7DWVXNL DQG 6PLWK
WHQG WR PRYH EH\RQG D WUDGLWLRQDO QDUUDWLYH 6HH IRU H[DPSOH 5DGRVDYOMHYLþ ´%H LQJ RQ WKH PDUJLQV ERWK OLWHUDOO\ DQG PHWDSKRULFDOO\ P\ SUDFWLFH DV D GUDPDWXUJ KDV E\ DQG ODUJH FRQVLVWHG RI EULGJH EXLOGLQJ RQ WKH RQH KDQG DQG RQ WKH RWKHU D QHJRWLDWLRQ RI IURQWLHUV EHWZHHQ WKHRU\ DQG SUDFWLFH EHWZHHQ ZULWHUV DQG GLUHFWRUV EHWZHHQ WKH VKRZ DQG WKH DXGLHQFH EHWZHHQ WKHDWUH DQG DFDGHPLD DQG VRPHWLPHV EHWZHHQ GLIIHUHQW FXOWXUHV WRRµ 5HYLHZ
KHOS WKH DXGLHQFH PRUH VXLWDEO\ H[SHULHQFH WKH VKRZ OREE\ GLVSOD\V WKH RULJLQV RI WKH UHSUHVHQWDWLRQV RQ WKH VWDJH DQG WKHLU HQFRXQWHU VWXG\ JXLGHV D GUDPDWXUJ·V QRWH SUH DQG SRVW VKRZ GLVFXVVLRQV ZLWK WKRVH UHSUHVHQWDWLRQV LV D SDVVLYH UDWKHU WKDQ DFWLYH HQFRXQWHU 5DQFLqUH WKHQ H[SODLQV KRZ QHDUO\ WZR WKRXVDQG \HDUV ODWHU WKDW 7KXV WKH GUDPDWXUJ H[LVWV HLWKHU WR FRPSOHWH WKH SURGXFWLRQ RU WR FUH FULWLTXH OHG WR WZR RI WKH PRVW LQÁXHQWLDO WKHDWUH WKHRULHV RI WKH DWH D OLWHUDWH DXGLHQFH ,Q HLWKHU LQVWDQFH RU LQ WKH FRPELQDWLRQ RI ERWK WZHQWLHWK FHQWXU\ %UHFKW·V WKHRU\ RI ´GLVWDQFHG LQYHVWLJDWLRQµ DQG LQVWDQFHV DV LV PRUH FRPPRQO\ WKH FDVH WKHUH LV D SUHVXSSRVLWLRQ RI D $UWDXG·V WKHRU\ RI ´YLWDO SDUWLFLSDWLRQµ ´(PDQFLSDWHG 6SHFWDWRUµ JDS EHWZHHQ WKH WZR SDUWLHV DQG PRUH LPSRUWDQW WR RXU GLVFXVVLRQ KHUH %RWK RI WKHVH WKHRULVWV VWUXJJOHG ZLWK KRZ WKHDWUH PXVW RYHUFRPH WKDW WKH GUDPDWXUJ LV WKH LQGLYLGXDO ZKR LV WKH PDVWHU RI WKDW JDS 7KH WKH JDS WKDW H[LVWV DV D UHVXOW RI VSHFWDWRUVKLS %UHFKW·V VROXWLRQ ZDV GUDPDWXUJ LV WKH RQH ZKR NQRZV ZKDW WKDW JDS LV RQ HLWKHU VLGH RI WKH WR ZLGHQ WKH JDS WR D SRLQW DW ZKLFK WKH VSHFWDWRUV ZHUH IRUFHG RXW HTXDWLRQ DQG DOVR NQRZV ZKDW HDFK VLGH PXVW GR WR EULGJH WKDW JDS RI SDVVLYLW\ DQG LQWR DFWLYLW\ $UWDXG·V VROXWLRQ ZDV WR HOLPLQDWH WKH VSDFH LQ WKH JDS E\ IRUFLQJ WKH HQHUJLHV RI WKH SURGXFWLRQ DQG WKH ,Q SRVLWLRQLQJ WKH GUDPDWXUJ WKLV ZD\ DV ´WKH PDVWHU µ ZH DUH PDN HQHUJLHV RI WKH VSHFWDWRUV WR EHFRPH RQH DQG WKH VDPH HQHUJ\ LQJ D PRYH WR FRQQHFW WKH ÀJXUH RI WKH GUDPDWXUJ ZLWK WKH ÀJXUH RI WKH SHGDJRJXH 7KDW GUDPDWXUJ\ KDV RIWHQ EHHQ LPDJLQHG LQ WHUPV RI 7KH SUREOHP ZLWK ERWK RI WKHVH VROXWLRQV KRZHYHU LV WKDW WKH\ DUH SHGDJRJ\ LV QRW VXUSULVLQJ VLQFH PRVW GUDPDWXUJLFDO WUDLQLQJ RFFXUV UHPHGLHV WR D SUREOHP WKDW GRHV QRW UHDOO\ H[LVW 5DQFLqUH DGDPDQWO\ LQ LQVWLWXWLRQV RI KLJKHU HGXFDWLRQ 7KDW VDLG KRZHYHU ZH DUH PRUH LQVLVWV WKDW 3ODWR·V WZR FULWLTXHV RI VSHFWDWRUVKLS WKH FULWLTXHV WKDW VSHFLÀFDOO\ DWWHPSWLQJ WR FRQQHFW WKH GUDPDWXUJ ZLWK D FHUWDLQ NLQG XQGHUZULWH %UHFKW·V DQG $UWDXG·V HQWLUH WKHRULHV³WKDW WKH VSHFWDWRU RI SHGDJRJXH ZKDW -DFTXHV 5DQFLqUH LQ 7KH ,JQRUDQW 6FKRROPDVWHU LV ERWK LJQRUDQW DQG SDVVLYH³DUH IDXOW\ WR EHJLQ ZLWK +H DUJXHV WKDW UHIHUV WR DV ´WKH VFKRROPDVWHU µ D SHGDJRJXH WKDW IXQFWLRQV XSRQ DQG WKH IDFW WKDW VSHFWDWRUV GR QRW NQRZ WKH RULJLQV RI WKH UHSUHVHQWDWLRQV FRQWLQXDOO\ UHSURGXFHV LQHJDOLWDULDQLVP EHWZHHQ KLPVHOI DQG KLV VWX WKH\ HQFRXQWHU LV QRW DQ\ GLIIHUHQW IURP WKHLU HYHU\GD\ OLYHG H[SHUL GHQWV ,Q D ODWHU HVVD\ ´7KH (PDQFLSDWHG 6SHFWDWRU µ 5DQFLqUH KLPVHOI HQFH (YHU\GD\ ZH PRYH WKURXJK WKH ZRUOG DQG DUH LJQRUDQW RI WKH FRQQHFWV KLV HGXFDWLRQDO WKHRU\ WR GUDPDWXUJ\ ZKHQ KH FRQWHQGV WKDW RULJLQV RI WKLQJV 0RUHRYHU DQ\WKLQJ WKDW ZH GR EHOLHYH ZH OHDUQ WKH FXUUHQW SHUIRUPHU VSHFWDWRU UHODWLRQVKLS LV FRQÀJXUHG DQDORJRXVO\ DERXW WKH ZRUOG FRPHV IURP D QHYHU HQGLQJ SURFHVV RI REVHUYDWLRQ WR WKH FXUUHQW WHDFKHU VWXGHQW UHODWLRQVKLS SHUIRUPHUV DQG WHDFKHUV DQG YHULÀFDWLRQ ZKLFK LV SUHFLVHO\ WKH VDPH SURFHVV ZH H[HUFLVH DUH SRVLWLRQHG DV WKRVH WKDW NQRZ ZKHUHDV VSHFWDWRUV DQG VWXGHQWV DUH DV ZH VLW LQ WKH WKHDWUH DXGLHQFH $V ZH ZDWFK D SHUIRUPDQFH ZH WKRVH WKDW GR QRW NQRZ :KDW 5DQFLqUH GRHV QRW GR LQ KLV HVVD\ KRZ REVHUYH DQG WKHQ YHULI\ WKRVH REVHUYDWLRQV UHODWLYH WR RWKHU WKLQJV HYHU LV WHDVH RXW WKH LPSOLFDWLRQV RI KLV WKHRU\ UHODWLYH WR WKH SXUSRVH ZH KDYH REVHUYHG LQ WKH SHUIRUPDQFH WKLQJV ZH KDYH REVHUYHG LQ DQG IXQFWLRQ RI GUDPDWXUJV LQ FRQWHPSRUDU\ WKHDWUH 6XFK D WHDVLQJ RXW RWKHU SHUIRUPDQFHV DQG WKLQJV ZH KDYH REVHUYHG LQ HYHU\GD\ OLIH LQ EHFRPHV SRVVLEOH E\ UHYLVLWLQJ WKH SDUWLFXODULWLHV RI 5DQFLqUH·V FRQ JHQHUDO 7KHQ DIWHU ZH OHDYH WKH SHUIRUPDQFH ZH ZLOO FRQWLQXH WR FHUQV LQ 7KH ,JQRUDQW 6FKRROPDVWHU REVHUYH DQG DW WLPHV YHULI\ RXU QHZ REVHUYDWLRQV ZLWK REVHUYDWLRQV ZH PDGH ZKLOH VSHFWDWRU WR WKH SHUIRUPDQFH LQ TXHVWLRQ 5DQFLqUH DUJXHV WKDW WKH FXUUHQW HGXFDWLRQDO PRGHO LQ WKH :HVW GRHV QRW IRVWHU LQWHOOHFWXDO HPDQFLSDWLRQ EXW UDWKHU UHVXOWV LQ LQWHOOHFWXDO $V IRU 3ODWR·V FODLP WKDW VSHFWDWRUVKLS LV GDQJHURXV EHFDXVH LW LV VWXOWLÀFDWLRQ 7KLV LV WKH FDVH EHFDXVH KH H[SODLQV WKH FXUUHQW PRG SDVVLYH³D FODLP WKDW ZH VHH UHÁHFWHG TXLWH GLUHFWO\ LQ %UHFKW·V HO LV SUHPLVHG RQ DQG FRQWLQXDOO\ SHUSHWXDWHV DQ LQHTXDOLW\ EHWZHHQ WKHRULHV³5DQFLq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qUH UHVSRQGV E\ GLVDJUHHLQJ WKDW VLPSO\ ,Q WKH FXUUHQW PRGHO WHDFKHUV DUH WKH RQHV WKDW NQRZ ZKDW VWXGHQWV EHFDXVH VSHFWDWRUV DUH QRW RQ WKH VWDJH WKLV GRHV QRW PHDQ WKDW WKH\ GR QRW NQRZ NQRZ ZKDW VWXGHQWV QHHG WR NQRZ DQG NQRZ ZKDW DUH QRW VWLOO DFWLYHO\ LQYROYHG ,QDVPXFK DV WKH VSHFWDWRUV DFWLYHO\ VWXGHQWV PXVW GR LQ RUGHU WR NQRZ LW 7KH VFKRROPDVWHU LV WKH PDVWHU SDUWLFLSDWH LQ WKH HQGOHVV SURFHVV RI REVHUYDWLRQ DQG YHULÀFDWLRQ RI WKH JDS $V VXFK WHDFKHUV ZLOO DOZD\V NQRZ PRUH WKDQ WKH VWX WKH\ DUH FUHDWLYH SDUWLFLSDQWV LQ WKH LQWHUSUHWDWLRQ RI DQ HYHQW DQG GHQWV NQRZ DQG ZLOO DOZD\V WKHUHIRUH EH RQ DQ LQHJDOLWDULDQ IRRWLQJ WKHUHIRUH QRW SDVVLYH UHFLSLHQWV RI DQ HYHQW ´6SHFWDWRUV VHH IHHO ZLWK WKHP 7KH UHVXOW RI WKLV 5DQFLqUH FRQWLQXHV LV WKDW WHDFKHUV DQG DQG XQGHUVWDQG VRPHWKLQJ LQ DV PXFK DV WKH\ FRPSRVH WKHLU RZQ VWXGHQWV LQFRUUHFWO\ EHOLHYH WKDW OHDUQLQJ UHTXLUHV DQG LV WKH GLUHFW SRHP DV LQ WKHLU ZD\ GR DFWRUV RU SOD\ZULJKWV GLUHFWRUV GDQFHUV UHVXOW RI WHDFKLQJ 7KLV LV WKH EHGURFN RI VWXOWLÀFDWLRQ LQ HGXFDWLRQ RU SHUIRUPHUVµ ´(PDQFLSDWHG 6SHFWDWRUµ 1HDUO\ WZHQW\ \HDUV DIWHU 5DQFLqUH SXEOLVKHG 7KH ,JQRUDQW 6FKRROPDV WHU KH ZDV LQYLWHG WR SUHVHQW D OHFWXUH DW D SHUIRUPDQFH VFKRRO LQ *HU PDQ\ 7KH RUJDQL]HU RI WKH HYHQW KDG UHDG 5DQFLqUH·V ERRN DQG WKRXJKW WKDW 5DQFLqUH PLJKW EH DEOH WR PDNH VRPH FRQQHFWLRQV EHWZHHQ KLV HGXFDWLRQDO WKHRU\ DQG FRQWHPSRUDU\ GLVFXVVLRQV RI VSHFWDWRUVKLS LQ WKH SHUIRUPLQJ DUWV 5DQFLqUH DFFHSWHG WKH LQYLWDWLRQ DQG WKH FKDOOHQJH DQG SUHVHQWHG DQ HVVD\ WLWOHG ´7KH (PDQFLSDWHG 6SHFWDWRU µ
)RU 5DQFLqUH FRQWHPSRUDU\ VSHFWDWRUVKLS LV QHLWKHU D SRVLWLRQ RI GDQJHURXV LJQRUDQFH QRU D VWDWH RI GDQJHURXV SDVVLYLW\ 7KH UHDVRQ WKDW WKH ELDV DJDLQVW VSHFWDWRUVKLS SHUVLVWV 5DQFLqUH DUJXHV LV WKDW %UHFKW·V DQG $UWDXG·V WKHRULHV DFWXDOO\ SHUSHWXDWH LW %HFDXVH WKHLU WKHRULHV DVVXPH WKH SUREOHP DQG EHFDXVH WKH\ SRVLWLRQ WKHPVHOYHV DV WKH VFKRROPDVWHUV UHODWLYH WR WKLV SUREOHP RXU EHOLHI LQ WKH SURE OHP FRQWLQXHV :H EHOLHYH WKDW DXGLHQFHV QHHG KHOS LQ DUULYLQJ DW NQRZOHGJH RI WKH RULJLQV RI WKH UHSUHVHQWDWLRQV EHFDXVH ZH DUH WROG +H EHJLQV E\ UHLWHUDWLQJ 3ODWR·V DUJXPHQW WKDW VSHFWDWRUVKLS LQ WKH WKDW WKHLU LJQRUDQFH RI WKRVH RULJLQV LV QHFHVVDULO\ GDQJHURXV DQG WKHDWUH LV GDQJHURXV EHFDXVH WKH VSHFWDWRUV KDYH QR NQRZOHGJH RI FDQQRW EH RYHUFRPH DQ\ RWKHU ZD\ WKDQ ZLWK FDOFXODWHG DVVLVWDQFH 5HYLHZ
6LPLODUO\ ZH EHOLHYH WKDW D SDUW RI WKH FDOFXODWHG DVVLVWDQFH WKDW DX GLHQFHV QHHG WR DUULYH DW WKLV NQRZOHGJH LV DQ LQFLWDWLRQ WR NQRZ DQG WKDW ZLWKRXW WKLV LQFLWDWLRQ WKH\ ZRXOG QRW RQ WKHLU RZQ DFFRUG SXUVXH LW ,Q WKHLU DWWHPSW WR HOLPLQDWH WKH JDS %UHFKW DQG $UWDXG XQZLWWLQJO\ SURGXFH WKH JDS $W WKLV SRLQW 5DQFLqUH·V WKHRULHV RQ VSHFWDWRUVKLS EHJLQ WR DOLJQ ZLWK KLV WKHRULHV RQ HGXFDWLRQ DQG WKH LPSOLFDWLRQV IRU GUDPD WXUJ\ EHJLQ WR EHFRPH LGHQWLÃ&#x20AC;DEOH 6SHFWDWRUV DQG OHDUQHUV DUH LQ D VLPLODU SRVLWLRQ %RWK DUH WROG WKDW WKH\ QHHG WR NQRZ ERWK DUH WROG ZKDW WKH\ QHHG WR NQRZ DQG ERWK DUH WROG WKDW WKH\ QHHG VRPHRQH HOVH WR KHOS WKHP NQRZ LW ,Q D PDMRULW\ RI WRGD\·V WKHDWUHV HVSH FLDOO\ LQ WKH 8 6 WKDW ´VRPHRQH HOVHµ LV WKH GUDPDWXUJ 7KH FRQ WHPSRUDU\ GUDPDWXUJ LV 5DQFLqUH·V WUDGLWLRQDO VFKRROPDVWHU ZKR ZLOO DOZD\V NQRZ PRUH WKDQ WKH DXGLHQFH DQG LQDVPXFK DV WKH GUDPDWXUJ SHUIRUPV D VLPLODU SHGDJRJLFDO IXQFWLRQ UHODWLYH WR WKH FRPSDQ\ ZLOO DOVR NQRZ PRUH WKDQ WKH SURGXFWLRQ FRPSDQ\ 7KLV GUDPDWXUJ³WKH VFKRROPDVWHU RI WKH ERDUGV³LV WKH Ã&#x20AC;JXUH WKDW ERWK UHSUHVHQWV DQG EHVW IDFLOLWDWHV WKH SURFHGXUHV RI VWXOWLÃ&#x20AC;FDWLRQ WKDW WKUHDWHQ FRQWHPSRUDU\ WKHDWUH DQG LWV DXGLHQFHV %XW LV VWXOWLÃ&#x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qUH·V RZQ FRQWULEXWLRQ LV ´WKH LJQRUDQW VFKRROPDVWHU µ ZKRP KH MX[WDSRVHV WR WKH WUDGLWLRQDO PRGHO RI WKH VFKRROPDVWHU ,Q KLV HGXFDWLRQDO WKHRU\ 5DQ FLqUH DUJXHV WKDW D WHDFKHU GRHV QRW QHHG WR EH PDVWHU RI D VXEMHFW LQ RU GHU WR WHDFK LW 7KH LJQRUDQW VFKRROPDVWHU LV KHUVHOI WKH SHUSHWXDO OHDUQHU ZKR GRHV QRW VD\ ´'R ZKDW , VD\ µ QRU ´'R ZKDW , GRµ UDWKHU VKH LQ YLWHV VWXGHQWV WR³DV 'HOHX]H KDV SKUDVHG LW³´'R ZLWK PHµ LY 6R VD\V WKH LJQRUDQW GUDPDWXUJ WKH HPDQFLSDWLQJ DQG HPDQFLSDWHG GUDPDWXUJ
IDFWV DQG LGHDV LQ WKH QDPH RI WUDGLWLRQ :KLOH VFKRODUV LQ WKH Ã&#x20AC;HOG RI FULWLFDO SHGDJRJ\ DQG WKH SHGDJRJ\ RI WKH RSSUHVVHG PRVW QR WDEO\ 3DROR )UHLUH KDYH VFUXWLQL]HG WKH HIÃ&#x20AC;FDF\ DQG WKHRUL]HG WKH KDUP RI VXFK WUDQVPLVVLRQV RI DFFHSWHG WUDGLWLRQ IHZHU SHRSOH KDYH WXUQHG WR )RXFDXOW DQG WKH OHFWXUHV KH JDYH LQ WKH ODVW WKUHH \HDUV RI KLV OLIH Y ,W LV WKHUH ZH DUJXH WKDW D FRPSHOOLQJ DOWHUQD WLYH WR WKH EDQNLQJ PHWKRG RI HGXFDWLRQ )UHLUH DQG WKH 6FKRRO PDVWHU 5DQFLqUH DSSHDUV EXW DOVR DQG PRUH LPSRUWDQWO\ IRU WKLV GLVFXVVLRQ D SURYRFDWLYH PRGHO RI GUDPDWXUJ UHYHDOV LWVHOI 0RUH VSHFLÃ&#x20AC;FDOO\ LQ WKH ODVW WKUHH VHULHV RI OHFWXUHV JLYHQ E\ )RXFDXOW WKH SKLORVRSKHU XQHDUWKV WKH SUDFWLFH RI SV\FKDJRJ\ DQG RIIHUV WKDW SUDFWLFH DV DQ DOWHUQDWLYH WR SHGDJRJ\ )RXFDXOW UHVXVFLWDWHV WKH WHUP ´SV\FKDJRJ\µ IURP FODVVLFDO SKLORVR SK\ ZKHUH LW GHQRWHG D SUDFWLFH RI JXLGLQJ DQG FDULQJ IRU WKH VRXO 7KH WHUP DSSHDUV LQ )RXFDXOW·V OHFWXUHV 7KH +HUPHQHXWLFV RI WKH 6XEMHFW ZKHUH KH VSHDNV WKH IROORZLQJ /HW XV FDOO ´SHGDJRJLFDO µ LI \RX OLNH WKH WUDQVPLVVLRQ RI D WUXWK ZKRVH IXQFWLRQ LV WR HQGRZ DQ\ VXEMHFW ZKDWHYHU ZLWK DSWLWXGHV FDSDELOLWLHV NQRZOHGJHV DQG VR RQ WKDW KH GLG QRW SRVVHVV EHIRUH DQG WKDW KH VKRXOG SRVVHVV DW WKH HQG RI WKH SHGDJRJLFDO UHODWLRQVKLS ,I WKHQ ZH FDOO ´SHGDJRJLFDOµ WKLV UHODWLRQVKLS FRQVLVWLQJ LQ HQGRZLQJ DQ\ VXEMHFW ZKRPVRHYHU ZLWK D VHULHV RI DELOLWLHV GHÃ&#x20AC;QHG LQ DGYDQFH ZH FDQ , WKLQN FDOO ´SV\FKDJRJLFDOµ WKH WUDQVPLVVLRQ RI D WUXWK ZKRVH IXQF WLRQ LV QRW WR HQGRZ DQ\ VXEMHFW ZKRPVRHYHU ZLWK DELOLWLHV HWFHWHUD EXW ZKRVH IXQFWLRQ LV WR PRGLI\ WKH PRGH RI EHLQJ RI WKH VXEMHFW WR ZKRP ZH DGGUHVV RXUVHOYHV
:H FDQ VXUPLVH IURP WKLV GHÃ&#x20AC;QLWLRQ DQG WKH WZR \HDUV RI OHFWXUHV WKDW IROORZ LW WKDW SV\FKDJRJ\ LV QRW D SDVVLQJ RQ RI VNLOOV RU VSH FLÃ&#x20AC;F NQRZOHGJH EXW UDWKHU WKH FXOWLYDWLRQ RI D OLIH SUDFWLFH ,Q SDU WLFXODU WKLV OLIH SUDFWLFH LV WKH DUW RI FDULQJ IRU WKH VHOI HSLWRPL]HG E\ 6RFUDWHV LQ Ã&#x20AC;IWK FHQWXU\ $WKHQV ,W LV XVHIXO IRU D PRPHQW WR FDVW 6RFUDWHV LQ WKH UROH RI 5DQFLqUH·V LJQRUDQW VFKRROPDVWHU VLQFH 6RFUDWHV· RQH FHUWDLQW\ LQ OLIH ZDV WKDW KH GLGQ·W NQRZ DQ\WKLQJ DQG WKXV DOO RI KLV OHVVRQV ZHUH DLPHG QRW DW HQGRZLQJ KLV VWX GHQWV ZLWK FHUWDLQ NQRZOHGJHV RU FDSDELOLWLHV EXW UDWKHU DW KHOS :LWK LWV IRFXV RQ HPDQFLSDWLRQ 5DQFLqUH·V WKHRU\ LV IXQGDPHQWDOO\ LQJ KLV VWXGHQWV XQGHUVWDQG KRZ PXFK WKH\ GLG QRW NQRZ 2U DV DQ LQTXLU\ LQWR VXEMHFWLYDWLRQ KRZ VXEMHFWV DUH SURGXFHG DQG LW LV )RXFDXOW VD\V KHUH ZLWKLQ WKH UHDOP RI WKH VXEMHFW WKDW 5DQFLqUH·V SHUIHFWO\ OXFLG DOEHLW QHJDWLYH OHVVRQ RQ WKH GUDPDWXUJ DV VFKRROPDVWHU HQGV³IRU D :KHUH WKH WHDFKHU VD\V , NQRZ OLVWHQ WR PH 6RFUDWHV ZLOO VD\ PRPHQW :KHQ VHDUFKLQJ IRU D SURGXFWLYH DOWHUQDWLYH SKLORVRSKLFDO , NQRZ QRWKLQJ DQG LI , FDUH IRU \RX WKLV LV QRW VR DV WR SDVV YLVLRQ IRU GUDPDWXUJ\ RQH WKDW DFNQRZOHGJHV WKH LQVLJKWV RI 5DQ RQ WR \RX WKH NQRZOHGJH \RX ODFN LW LV VR WKDW WKURXJK XQGHU FLqUH ZKLOH DOVR FRQVWUXFWLQJ D WKHRU\ RI D SRWHQWLDO GUDPDWXUJLFDO Y 7KH PHQWLRQ RI )UHLUH LQ DQ DUWLFOH WKDW DSSURDFKHV TXHVWLRQV RI SHGDJRJ\ UHODWLYH SUDFWLFH IRU WKH WZHQW\ Ã&#x20AC;UVW FHQWXU\ ZH VKRXOG WXUQ WR )RXFDXOW DQG WR WKHDWULFDO SUDFWLFH PLJKW OHDG UHDGHUV WR ZRQGHU DERXW WKH SRVLWLRQ RI $XJXVWR KLV GLVFXVVLRQ RI SV\FKDJRJ\ 7KURXJK WKDW GLVFXVVLRQ LW LV SRVVLEOH %RDO LQ WKLV FRQWH[W ,Q KLV ZRUN 5DQFLqUH GLUHFWO\ UHIHUHQFHV %UHFKW DQG $UWDXG WR HQWHU IXOO\ LQWR WKH GLDOHFWLFDO FRPSOH[LW\ RI WKH TXHVWLRQ RI VXE EHFDXVH WKH UHYLVLRQV WKH\ SURPXOJDWH DUH UHYLVLRQV WR WKH WKHDWUH 7KH\ HDFK VHH VRPHWKLQJ WKDW QHHGV WR EH GRQH GLIIHUHQWO\ LQ WKHDWUH DQG DWWHPSW WKURXJK WKHLU MHFWLYDWLRQ DQG LWV GUDPDWXUJLFDO LPSOLFDWLRQV 3V\FKDJRJ\ 7R EH FOHDU 5DQFLqUH·V WKLQNLQJ RQ HGXFDWLRQ GRHV QRW GLVPLVV SHGDJRJ\ SHU VH EXW UDWKHU FDOOV LQWR TXHVWLRQ D FHUWDLQ IRUP RI SHGDJRJ\ WKDW KDV WDNHQ DV LWV UHPLW WKH WUDQVPLVVLRQ RI FHUWDLQ LY
´:H OHDUQ QRWKLQJ IURP WKRVH ZKR VD\ ¶'R DV , GR · 2XU RQO\ WHDFKHUV DUH WKRVH ZKR WHOO XV WR ¶GR ZLWK PH · DQG DUH DEOH WR HPLW VLJQV WR EH GHYHORSHG LQ KHWHURJH QHLW\ UDWKHU WKDQ SURSRVH JHVWXUHV IRU XV WR UHSURGXFH µ 'HOHX]H
WKHRU\ DQG SUDFWLFH WR UHIRUP WKH WKHDWUH %RDO RQ WKH RWKHU KDQG ZKLOH GHHSO\ FRPPLWWHG WR WKHDWULFDOLW\ GRHV QRW GLUHFW KLV SURMHFW WRZDUG UHIRUPLQJ WKH WKH DWUH ,I KH GLG WKHQ ZH VXVSHFW 5DQFLqUH ZRXOG WDNH LVVXH ZLWK LW :KHQ 5DQFLqUH DUWLFXODWHV WKH DUJXPHQW RI WKRVH WKDW ZDQW WR UHIRUP WKHDWUH KH ZULWHV ´:KDW LV UHTXLUHG LV D WKHDWUH ZLWKRXW VSHFWDWRUV ZKHUH WKRVH LQ DWWHQGDQFH OHDUQ IURP DV RS SRVHG WR EHLQJ VHGXFHG E\ LPDJHV ZKHUH WKH\ EHFRPH SDUWLFLSDQWV DV RSSRVHG WR SDVVLYH YR\HXUVµ ´(PDQFLSDWHG 6SHFWDWRUµ 7KLV GHVFULSWLRQ VRXQGV VWULNLQJO\ VLPLODU WR ZKDW %RDO ZDQWV WR DFKLHYH WKURXJK KLV QRWLRQ RI ´VSHFWDFWRUV µ +RZ HYHU %RDO GRHV QRW SURSRVH VSHFWDFWRUV DV D PHDQV WR UHIRUP WKH WKHDWUH ,Q WKLV VHQVH %RDO EHORQJV PRUH FOHDUO\ WR WKH GLVFLSOLQH RI $SSOLHG 7KHDWHU WKDQ KH GRHV WR 7KHDWHU 6WXGLHV³ZKLFK LV WKH GLVFLSOLQH ZLWK ZKLFK ZH DUH FRQFHUQHG KHUH 5HYLHZ
VWDQGLQJ WKDW \RX NQRZ QRWKLQJ \RX ZLOO OHDUQ WR WDNH FDUH RI \RXUVHOYHV &RXUDJH RI 7UXWK
)RXFDXOW·V LQWHUSUHWDWLRQ RI 6RFUDWHV PRYHV DZD\ IURP WKH HPSKDVLV RQ UHFROOHFWLRQ DQG UHPHPEUDQFH³WKH DOHWKHLD ZKLFK ZH PLJKW FUHDWLYHO\ UHDG DV ´XQIRUJHWWLQJ µ WKDW FRQVWLWXWHV WKH DFW RI XQGHU VWDQGLQJ³IUHTXHQWO\ DVVRFLDWHG ZLWK 6RFUDWLF SHGDJRJ\ LQ RUGHU WR HPSKDVL]H WKH SUDFWLFH RI FDULQJ IRU WKH VHOI WKDW KDV UHPDLQHG RE VFXUHG EHQHDWK WKH OXPLQRVLW\ RI WKH SKUDVH ´NQRZ WK\VHOI µ ,Q WKH IROORZLQJ VHULHV RI OHFWXUHV WR ZKLFK )RXFDXOW JDYH WKH QDPH 7KH *RYHUQPHQW RI 6HOI DQG 2WKHUV WKH WHUP SV\FKDJRJ\ UHWXUQV DQG WDNHV XS D PXFK PRUH SURPLQHQW SRVLWLRQ LQ WKH DQDO\VLV RI FODVVLFDO SKLORVRSK\ )RXFDXOW FRQWLQXHV WR EXLOG RQ WKH QHJDWLYH GHÃ&#x20AC;QLWLRQ RI SV\FKDJRJ\ E\ SDLULQJ WKH WHUP ZLWK WKDW WRXFKVWRQH RI SKLORVRSKLFDO GLVFRXUVH WKH GLDOHFWLF ´'LDOHFWLF DQG SV\FKDJRJ\ µ KH VD\V DUH WZR VLGHV RI RQH DQG WKH VDPH SURFHVV RI RQH DQG WKH VDPH DUW RI RQH DQG WKH VDPH WHNKQH YL ZKLFK LV WKH WHNKQH RI ORJRV /LNH WKH SKLORVRSKLFDO ORJRV WKH SKLORVRSKLFDO WHNKQH RI ORJRV LV D WHNKQH ZKLFK PDNHV SRVVLEOH DW WKH VDPH WLPH ERWK NQRZOHGJH RI WKH WUXWK DQG WKH SUDFWLFH RU DVFHVLV RI WKH VRXO RQ LWVHOI
$V )RXFDXOW JRHV RQ WR FODULI\ SV\FKDJRJ\ LV WKH PRGH RI SKLOR VRSKLFDO SUD[LV ERXQG XS ZLWK WKH HIIHFWV RI WKH WUXWK RQ WKH VRXO DQG RQ WKH SUDFWLFH RI HYHU\GD\ OLIH WKDW RQH OHDGV L H WKDW ZKLFK )RXFDXOW FDOOV DVFHVLV RU WKH H[HUFLVH RI OLIH 8OWLPDWHO\ )RXFDXOW·V QRWLRQ RI SV\FKDJRJ\ KHOSV WR SURYLGH D QHZ SHU VSHFWLYH RQ WKH DUW RI WHDFKLQJ WKDW UHVRQDWHV ZLWK WKH SHUVSHFWLYHV RSHQHG E\ WKLQNHUV OLNH 5DQFLqUH DQG )UHLUH 7KLV QHZ SHUVSHFWLYH PRYHV DZD\ IURP WKH LQVWUXPHQWDO XVH RI NQRZOHGJH WKDW KROGV VZD\ LQ DFDGHPLD WRGD\ 7KH SV\FKDJRJXH LV QRW LQWHUHVWHG LQ PDLQWDLQLQJ WKH WUDGLWLRQ RI NQRZOHGJH KDQGHG GRZQ WKURXJK VSHFLÃ&#x20AC;F GLVFLSOLQHV 5DWKHU WKH SV\ FKDJRJXH Ã&#x20AC;QGV KLV RU KHU SULPDU\ HQG LQ WKH SUDFWLFH RI DQ HWKLFDO H[LV WHQFH WKURXJK ZKLFK RQH FRQVWDQWO\ DFWV LQ DFFRUGDQFH ZLWK WKH WUXWK RQH NQRZV WR EH WUXH 7KH NH\ TXHVWLRQ WR ZKLFK WKH SV\FKDJRJXH DWWHQGV LV $P , WKH HWKLFDO VXEMHFW RI WKH WUXWKV , NQRZ" $QVZHULQJ WKLV TXHVWLRQ UHTXLUHV HQWHULQJ WKH HWKLFDO GRPDLQ DQG OHDYLQJ DVLGH WKH WUDGLWLRQDO UROH RI WKH WHDFKHU DV WKDW SHUVRQ ZKR HQGRZV VWXGHQWV ZLWK NQRZOHGJHV DQG FDSDELOLWLHV WKDW KH RU VKH GLG QRW KDYH EHIRUH DQG HQJDJLQJ LQ WKH ODERU RI FKDQJLQJ WKH PRGH RI EHLQJ RI WKH VXEMHFW 3V\FKDJRJLFDO 'UDPDWXUJ\ $V ZLWK RXU DQDO\VLV RI 5DQFLqUH·V HGXFDWLRQDO WKHRU\ DERYH LW LV QRW LPPHGLDWHO\ FOHDU KRZ )RXFDXOW·V WKRXJKWV RQ SV\FKDJRJ\ ZKLFK FHUWDLQO\ RSHQ D QHZ OLQH RI VLJKW RQWR WKH GRPDLQ RI WHDFK LQJ WUDQVODWH LQWR D GUDPDWXUJLFDO SURJUDP <HW GHVSLWH WKH XQID PLOLDU ZRUG LWVHOI SV\FKDJRJ\ DQG GUDPDWXUJ\ KDYH D ORQJ KLVWRU\ WRJHWKHU )RXFDXOW KLPVHOI WRXFKHV RQ WKLV FRQQHFWLRQ ZKHQ KH DQD O\]HV WKH &\QLF SUDFWLFH RI SKLORVRSK\ DQG DWWHPSWV WR LOOXVWUDWH KRZ YL
$ WHUP FORVHO\ UHODWHG LQ $QFLHQW *UHHN WR WKH ZRUG HSLVWHPH NQRZOHGJH WHNKQH LV XVXDOO\ WUDQVODWHG DV FUDIW RU DUW ,Q WKLV SDVVDJH WKHQ )RXFDXOW LV FRQFHUQHG ZLWK WKH DUW RI ORJRV ZKLFK PDNHV XS WKH DUWV RI GLDOHFWLFDO WKLQNLQJ DQG SV\FKDJRJLFDO H[FKDQJH 1RW WR EH FRQIXVHG ZLWK D NQRZOHGJH WKDW RQH FDQ SRVVHVV WKH DUW RU WHNKQH RI SV\FKDJRJ\ PXVW EH SUDFWLFHG 5HYLHZ
SUHFLVHO\ WKH SV\FKDJRJXH ZRUNHG WR WUDQVIRUP WKH PRGH RI EHLQJ RI WKH VXEMHFW WR ZKLFK WKH SV\FKDJRJXH DGGUHVVHG KLPVHOI 7KH &\QLFV PRVW QRWDEO\ 'LRJHQHV SUDFWLFHG WKHLU SKLORVRSK\ WKURXJK D FRPSOHWH FRPPLWPHQW WR ZKDW )RXFDXOW QDPHG WKH XQ FRQFHDOHG OLIH %\ H[SRVLQJ WKHLU ERGLHV WKHLU WKRXJKWV DQG WKHLU GDLO\ DFWLYLWLHV IURP EDWKLQJ DQG JRLQJ WR WKH EDWKURRP WR KDYLQJ VH[ LQ SXEOLF WKH &\QLFV KDUPRQL]HG WKHLU ZRUGV ZLWK WKHLU DFWLRQV ´7KH OLIH RI WKH &\QLF LV XQFRQFHDOHG LQ WKH VHQVH WKDW LW LV UHDOO\ PDWHULDOO\ SK\VLFDOO\ SXEOLF µ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
)URP ´GUDPDWL]DWLRQ µ )RXFDXOW WDNHV RQH PRUH VWHS DQG LGHQWLÃ&#x20AC;HV WKH &\QLF SHUIRUPDQFH RI HYHU\GD\ OLIH DV D YHULWDEOH GUDPDWXUJ\ ´7KH GUDPDWXUJ\ RI &\QLF SRYHUW\ µ KH VD\V ´LV IDU IURP WKDW LQ GLIIHUHQFH ZKLFK LV XQFRQFHUQHG DERXW ZHDOWK ZKHWKHU WKLV EH WKH ZHDOWK RI RWKHUV RU RQH·V RZQ LW LV DQ HODERUDWLRQ RI RQHVHOI LQ WKH IRUP RI YLVLEOH SRYHUW\ ,W LV QRW DQ DFFHSWDQFH RI SRYHUW\ LW LV D UHDO FRQGXFW RI SRYHUW\µ +RZ VKRXOG ZH XQGHUVWDQG WKLV GHSOR\PHQW RI WKH WHUP GUDPDWXU J\" :KHQ YLHZHG WKURXJK WKH OHQV RI SV\FKDJRJ\ )RXFDXOW XWLOL]HV WKLV WHUP WR DFFHQWXDWH WKH SUDFWLFDO DVSHFW RI WKH &\QLF OLIH SUDFWLFH 0RUH WKDQ VLPSO\ D OLIH FKRLFH WKH &\QLF SUDFWLFH RI SKLORVRSK\ LV D SHUIRUPDQFH RI VSHFLÃ&#x20AC;F LGHDOV DQG EHOLHIV 7R SUDFWLFH &\QLF SKLORVRSK\ RQH PXVW EHFRPH WKH HWKLFDO VXEMHFW RI FHUWDLQ WUXWKV IRU H[DPSOH RQH PXVW SOHGJH DOOHJLDQFH WR WKH XQFRQFHDOHG OLIH DQG PDNH PDQLIHVW WKDW DOOHJLDQFH WKURXJK D YLVLEOH GLVSOD\ RI RQH·V SRYHUW\ %\ SUDFWLFLQJ VXFK DQ DOOHJLDQFH DQG E\ GHGLFDWLQJ RQHVHOI WR WKLV SHUIRUPDQFH WKH &\QLF QRW RQO\ KDUPRQL]HV ZLWK WKH WUXWKV KH RU VKH EHOLHYHV WR EH WUXH EXW DOVR FRPPXQLFDWHV WKH YDOXH RI WKHVH WUXWKV WR DOO ZKR ZLWQHVV WKH &\QLF PRGH RI OLIH 7KLV WUDQV PLVVLRQ RI FHUWDLQ WUXWKV WKURXJK RQH·V GDLO\ DHVWKHWLFV RI H[LVWHQFH IRU WKH EHQHÃ&#x20AC;W RI RWKHUV H[LVWV DV D GUDPDWXUJLFDO DFWLRQ DQG WKLV GUDPDWXUJLFDO DFWLRQ LV D ´UHDO FRQGXFWµ LQWHQGHG WR FRQYHUW RWKHUV WR WKH &\QLF ZD\ RI OLIH 2QH QHHG QRW ORRN DV IDU EDFN DV &ODVVLFDO $WKHQV RU ,PSHULDO 5RPH IRU DQ H[DPSOH RI SV\FKDJRJLFDO GUDPDWXUJ\ KRZHYHU RWKHU H[DP SOHV H[LVW H[DPSOHV WKDW VWUDGGOH WKH UHDOP RI HYHU\GD\ OLIH DQG WKH PRUH WUDGLWLRQDO WKHDWUH YHQXH /RRN IRU LQVWDQFH DW WKH Ã&#x20AC;QDO OLQHV RI $FW 2QH LQ 9ODGLPLU 0D\DNRYVN\·V 7KH &KDPSLRQVKLS RI WKH 8QLYHUVDO &ODVV 6WUXJJOH RIIHUHG E\ WKH FKDUDFWHU RI WKH 5HIHUHH ,QWHUPLVVLRQ IRU WHQ PLQXWHV $OO \RX ZKR ZDQW WKH 5HGV
WR ZLQ DIWHU WKH WHQ PLQXWH EUHDN VKRXOG JR KRPH DQG WRPRUURZ JR WR WKH IURQW DV YROXQWHHUV³ , DP UHDG\ WR JR WKHUH WRGD\ 7R JHW WKHUH IDVWHU ,·OO HYHQ WDNH D FDUULDJH
SURGXFWLYH DQG IULJKWHQLQJ SRWHQWLDOLWLHV RI VXFK D SUDFWLFH 0RUH RYHU ZRUNLQJ WKURXJK WKLV DVSHFW RI )RXFDXOW·V WKRXJKW ZLOO OHDG EDFN WR 5DQFLqUH·V FULWLTXH RI VWXOWLI\LQJ SHGDJRJ\ DQG KHOS EULQJ WKLV UH WKLQNLQJ RI GUDPDWXUJ\ WR D SURYLVLRQDO FRQFOXVLRQ ,Q ´7KH 6XEMHFW DQG 3RZHU µ )RXFDXOW IUDPHV KLV UHVHDUFK DV D ERG\ RI ZRUN FRQFHUQHG QRW FKLHÁ\ ZLWK SRZHU EXW ZLWK WKH VXEMHFW DQG QRW ZLWK WKH VXEMHFW SHU VH EXW ZLWK WHFKQLTXHV WKURXJK ZKLFK VXE MHFWV DUH SURGXFHG RU ZKDW KH FDOOV ´WKH JRYHUQPHQW RI LQGLYLGXDO L]DWLRQµ 7KLV JRYHUQPHQWDOLW\ ZRUNV QHLWKHU H[FOXVLYHO\ IURP WKH WRS GRZQ QRU IURP WKH ERWWRP XS QHLWKHU VROHO\ IURP WKH H[HFX WLRQ RI SRZHU XSRQ DQ XQZLWWLQJ LQGLYLGXDO QRU IURP DQ LQGLYLGXDO·V UHVLVWDQFH WR VRPH VSHFLÀF SRZHU VXFK DV ODZ RU PHGLFLQH 5DWKHU WKH JRYHUQPHQW RI LQGLYLGXDOL]DWLRQ FRQFHUQV WKH ÁRZ RI SRZHU UHOD WLRQV DQG LV WKXV FRPSULVHG VLPXOWDQHRXVO\ E\ WHFKQLTXHV RI DXWKRU LW\ DQG WKH UHVLVWDQFH WR WKRVH WHFKQLTXHV )RXFDXOW VXPPDUL]HV WKLV FRPSOH[ DFW RI VXEMHFWLYDWLRQ ZLWK WKH IROORZLQJ GHFODUDWLRQ ´7KHUH DUH WZR PHDQLQJV RI WKH ZRUG ¶VXEMHFW· VXEMHFW WR VRPHRQH HOVH E\ FRQWURO DQG GHSHQGHQFH DQG WLHG WR KLV RZQ LGHQWLW\ E\ D FRQVFLHQFH RU VHOI NQRZOHGJH %RWK PHDQLQJV VXJJHVW D IRUP RI SRZHU WKDW VXE MXJDWHV DQG PDNHV VXEMHFW WRµ ´6XEMHFW DQG 3RZHUµ
%XW WKHQ WKDW·V LW 7KH SOD\ LV RYHU 7KHUH LV QR $FW :K\" %HFDXVH WKH DUJXPHQW FRQVWUXFWHG E\ 0D\DNRYVN\ DQG HQXQFLDWHG E\ WKH 5HI HUHH VWLPXODWHV HYHU\RQH LQ WKH DXGLHQFH WR MRLQ RU WR UH XS ZLWK WKH 5HYROXWLRQ 7KH PRGH RI VXEMHFWLYLW\ RI WKH DXGLHQFH WUDQVIRUPV IURP SHDVDQW WR 5HYROXWLRQDU\ LQ WKH EOLQN RI DQ H\H 1R NQRZOHGJH LV WUDQV IHUUHG 5DWKHU D WUXWK LV WUDQVPLWWHG DQG WKHQ UHFHLYHG E\ WKRVH JDWKHUHG WRJHWKHU LQ WKH VSDFH RI WKHDWUH (YHQ LI ZH WDNH WKLV SOD\ DZD\ IURP LWV KLVWRULFDO VSHFLÀFLW\ 0D\DNRYVN\·V GUDPDWXUJ\ DVNV XV ZKHUH LV WKH IURQW WR ZKLFK , DP VXSSRVHG WR UDFH RII LQ D FDUULDJH" :KDW LV WKH IURQW ZKHUH , ZDJH P\ EDWWOH IRU WUXWK WRGD\" :KDW LV WKH WUXWK WR ZKLFK , PXVW DOLJQ P\VHOI" +RZ PLJKW , GLVWLQJXLVK EHWZHHQ WKH WUXWK DQG WKH UKHWRULF RI HPSW\ GLVFRXUVH" $P , WKH HWKLFDO VXEMHFW RI WKH WUXWKV , NQRZ" ,I DV LQ 0D\DNRYVN\·V FDVH ZH DUH IDLWKIXO WR WKH 5HYROX 7R UHSKUDVH WKLV ZHOO NQRZQ IRUPXODWLRQ RI )RXFDXOW·V VXEMHFWL WLRQ WKHQ ZH PXVW KDUPRQL]H RXU DFWLRQV DQG RXU WKRXJKWV E\ OHDYLQJ YDWLRQ RU WKH SURFHVV WKURXJK ZKLFK VXEMHFWV FRPH WR EH FRPHV WKH WKHDWUH DQG JRLQJ WR WKH IURQW DERXW WKURXJK WKH GXDO SURFHVV RI DOLJQLQJ RQHVHOI ZLWK D VSHFLÀF WUXWK DQG EHFRPLQJ VXEMXJDWHG WR D VSHFLÀF LGHRORJ\ SHUKDSV 0D\DNRYVN\·V DJLWDWLRQDO SURSDJDQGD DQG WKH &\QLFV· XQFRQFHDOHG ZLWKRXW PXFK DZDUHQHVV RI WKLV VXEMXJDWLRQ 3OXJJLQJ WKLV GXDO OLIH SUHVHQW WZR PRGHOV RI D SV\FKDJRJLFDO GUDPDWXUJ\ %RWK SHUIRU QRWLRQ EDFN LQWR WKH IUDPHZRUN RI SV\FKDJRJLFDO GUDPDWXUJ\ WKDW PDQFHV WKRXJK FRPSULVLQJ YDVWO\ GLIIHUHQW VFRSHV DQG LUUXSWLQJ LQ GLI ZH KDYH FRQVWUXFWHG WKXV IDU PDNHV YLVLEOH D PDMRU SUREOHP RI IHUHQW WLPHV DQG SODFHV GUDJ XV PLOHV DZD\ IURP WKH FRQWHPSRUDU\ ZKLFK 0D\DNRYVN\·V SOD\ DQG LWV KLVWRULFDO IXQFWLRQ VHUYHV ZHOO XQGHUVWDQGLQJ RI WKH GUDPDWXUJ DV WKH PDVWHU RI WKH JDS EHWZHHQ DXGL DV DQ LQGLFDWRU %HIRUH ZH FKDPSLRQ 0D\DNRYVN\·V SV\FKDJRJLFDO HQFH DQG SHUIRUPHU DQG UHFRQÀJXUH WKH SUDFWLFH RI GUDPDWXUJ\ DV LQ GUDPDWXUJ\ DV D SRZHUIXO IRUFH WR UHFNRQ ZLWK ZH PXVW DQDO\]H )RXFDXOW·V ZRUGV ´WKH WUDQVPLVVLRQ RI D WUXWK ZKRVH IXQFWLRQ LV QRW WKH GLDOHFWLF RI VXEMHFWLYDWLRQ DW WKH KHDUW RI LW 2Q WKH RQH KDQG WR HQGRZ DQ\ VXEMHFW ZKRPVRHYHU ZLWK DELOLWLHV HWFHWHUD EXW ZKRVH WKH SOD\·V DIIHFWLYH GUDPDWXUJ\ PD\ KDYH ZRUNHG WR VWLPXODWH IXQFWLRQ LV WR PRGLI\ WKH PRGH RI EHLQJ RI WKH VXEMHFW WR ZKRP ZH WKH VHOI DZDUHQHVV RI HDFK DXGLHQFH PHPEHU WKHUHE\ OHDGLQJ WR DGGUHVV RXUVHOYHVµ +HUPHQHXWLFV RI WKH 6XEMHFW 7KHRUL]LQJ WKH DQ DFW RI LGHQWLW\ IRUPDWLRQ WKURXJK ZKLFK WKH DXGLHQFH PHPEHU SUDFWLFH RI MXVW VXFK D GUDPDWXUJ\ LQ WKH SUHVHQW EULQJV XV EDFN WR WKH DFWHG LQ ÀGHOLW\ WR WKH 2FWREHU 5HYROXWLRQ E\ MRLQLQJ WKH 5HIHUHH LPSRUWDQW WDVN RI QDPLQJ WKH UHODWLRQVKLS EHWZHHQ GUDPDWXUJ\ SKL DW WKH IURQW RI WKH 5HG $UP\ 2Q WKH RWKHU KDQG WKH VDPH DIIHF ORVRSK\ DQG WKH IRUPDWLRQ RI WKH VXEMHFW WLYH GUDPDWXUJ\ PD\ LQGLFDWH )RXFDXOW·V IRUPXODWLRQ RI ´VXEMHFW WR VRPHRQH HOVH E\ FRQWURO DQG GHSHQGHQFH µ 3HUKDSV ZH VKRXOG UHDG 3V\FKDJRJLFDO 'UDPDWXUJ\·V 7ZR 3DWKV 0D\DNRYVN\·V SOD\ DV D V\PSWRP RI WKH ULVLQJ 6WDOLQLVW LGHRORJL FDO DSSDUDWXV DQG WKH WRS GRZQ JRYHUQPHQWDOL]DWLRQ RI WKH SRVW 1RW D PDVWHU RI WKH JDS EHWZHHQ DXGLHQFH DQG SHUIRUPHUV EXW D /HQLQ &RPPXQLVW UHJLPH SUDFWLFH RI FRQGXFWLQJ SDUWLFLSDQWV WR WKH WUXH OLIH WKLV LV WKH QHZ FRQÀJXUDWLRQ RI GUDPDWXUJ\ ZH DUULYH DW E\ YLHZLQJ WKHDWUH DQG (YHQ LI ZH UHIXVH WR DGRSW RQH UHDGLQJ RI 0D\DNRYVN\·V SOD\ SHUIRUPDQFH WKURXJK WKH OHQV RI FRQWLQHQWDO SKLORVRSK\ :KLOH RYHU WKH RWKHU ZKLFK ZH VKRXOG GR LQ RUGHU WR VWD\ IDLWKIXO WR PDQ\ SKLORVRSKHUV PRVW QRWDEO\ *LRUJLR $JDPEHQ +RPR 6DFHU )RXFDXOW·V ZRUN WKH WZR SDWKV RI SV\FKDJRJLFDO GUDPDWXUJ\ EH DQG :KDW ,V DQ $SSDUDWXV" DQG $ODLQ %DGLRX %HLQJ DQG (YHQW FRPHV YLVLEOH KHUH ,I ZH IROORZ RQH SDWK ZH DUULYH HYHQWXDOO\ DW DQG 7KHRU\ RI WKH 6XEMHFW ZRUN GLOLJHQWO\ WR XQWDQJOH WKH PHDQV D GUDPDWXUJ\ GHGLFDWHG WR UHSUHVHQWLQJ DQG UHLQIRUFLQJ D VSHFLÀF E\ ZKLFK D VXEMHFW LV FRQVWUXFWHG GHFRQVWUXFWHG REVWUXFWHG DQG LGHRORJ\ 7KH SV\FKDJRJLFDO IRUFH RI 0D\DNRYVN\·V SRHPV DQG PDQLSXODWHG )RXFDXOW·V ZRUN VWDQGV DSDUW DV WKH PRVW DSSOLFDEOH SOD\V ZHUH IRU H[DPSOH XWLOL]HG E\ 6WDOLQ WR HQIRUFH KLV EUDQG RI WR RXU GLVFXVVLRQ KHUH DQG WKLV LV WKH FDVH IRU RQH VLPSOH UHDVRQ FRPPXQLVP DQG WR LQFXOFDWH 5XVVLDQV LQWR D SDUWLFXODU LGHRORJL )RXFDXOW·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ÀF SRLQW RI YLHZ VXEMHFWLYDWLRQ LQ )RXFDXOW·V ZRUN ZLOO OHDG XV WR ZKDW ZH FDOO WKH 7R FRQFOXGH WKLV LQLWLDO HODERUDWLRQ RI SV\FKDJRJLFDO GUDPDWXUJ\ WZR SDWKV RI SV\FKDJRJLFDO GUDPDWXUJ\ DQG DOORZ XV WR PDS ERWK WKH ZKLFK ZH IRUZDUG DV DQ HPDQFLSDWLQJ GUDPDWXUJ\ ZH ZRXOG OLNH 5HYLHZ
WR ZRUN WKURXJK WKH LGHDV SUHVHQWHG E\ %RMDQD &YHMLF·V DUWLFOH )RU &YHMLF LPDJLQLQJ WKH GUDPDWXUJ DQG LQ KHU FDVH WKH FKRUHRJUD SKHU DV FUHDWLYH PHGLDWRUV LQ WKH VHQVH JLYHQ WR WKH WHUP E\ 'HOHX]H ´7KH ,JQRUDQW 'UDPDWXUJ µ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qUH·V FULWLTXH OHFWXDO H[SHULHQFH IRU D YLHZLQJ SXEOLF 7R WUDQVLWLRQ IURP WKLV ODQ RI WKH SHGDJRJLFDO +DUPRQL]LQJ ZLWK WKH DQDO\VLV ZH KDYH RIIHUHG JXDJH EDFN LQWR WKH NH\ RI SV\FKDJRJLFDO GUDPDWXUJ\ ZH VXJJHVW WKDW LQ WKH ÀUVW SDUW RI WKLV HVVD\ &YHMLF FULWLTXHV WKH LGHQWLW\ RI WKH GUD FKDQJLQJ RQH·V PRGH RI EHLQJ D VXEMHFW UHTXLUHV HQWHULQJ LQWR D VLPL PDWXUJ DV PDVWHU RI WKH JDS ´,I WKHUH VKRXOG EH D GUDPDWXUJ µ &YH ODU FUHDWLYH PHGLDWRU UHODWLRQVKLS WKH JRDO RI ZKLFK LV QRW WR WUDQVPLW MLF DUJXHV ´VKH LVQ·W D VWDII PHPEHU RI D FRPSDQ\ RU D UHSHUWRLUH NQRZOHGJH RU VNLOO EXW WR WUDQVPLW WUXWKV WKDW ZLOO OHDG ERWK SDUWLHV LQWR WKHDWHU³VRPHRQH ZKR RFFXSLHV D SRVLWLRQ RI NQRZ KRZ FUDIW RU D OLIH SUDFWLFH WKDW KDUPRQL]HV ZLWK RYHUDUFKLQJ FRQFHSWV PpWLHU GUDPDWXUJµ ,Q VXFK DQ LQVWLWXWLRQDO SRVLWLRQ DQG ZLWKLQ WKH VXEMHFW SRVLWLRQ RI SHGDJRJXH WKH ´GUDPDWXUJ SXWV KHUVHOI LQWR 7KH UHODWLRQVKLS LQ RXU FDVH KDV WZR D[HV 7KH ÀUVW H[LVWV ZLWKLQ WKH WKH SULHVWO\ RU PDVWHUO\ SRVLWLRQ RI WKH RQH ZKR NQRZV EHWWHU ZKR SURGXFWLRQ LWVHOI EHWZHHQ WKH FUHDWRUV RI WKH ZRUN ,QVWHDG RI LQVWL FDQ SUHGLFW ZKDW WKH DXGLHQFH PHPEHUV VHH WKLQN IHHO OLNH RU GLV WXWLQJ D À[HG SRVLWLRQ IRU WKH GUDPDWXUJ ZH HQFRXUDJH WKHDWUH PDN OLNHµ ,QVWHDG RI WKLV LGHQWLW\ &YHMLF SURSRVHV LPDJLQLQJ WKH HUV WR WUHDW DOO PHPEHUV RI WKH SURGXFWLRQ WHDP DV GUDPDWXUJV WKDW GUDPDWXUJ WKURXJK KHU IXQFWLRQ DV ´WKH FRQVWLWXWLYH VXSSOHPHQW LQ D LV DV IULHQGV RI WKH SUREOHP RI WKH SLHFH XQGHU FRQVWUXFWLRQ (DFK PHWKRG RI H[SHULPHQWDO FUHDWLRQ³D FR FUHDWRU RI D SUREOHPµ GUDPDWXUJ PXVW EULQJ KLV RU KHU DSSDUDWXV RI FRQFHSWV DQG DIIHFWV WR ,Q WKLV FDVH ´D SUREOHPµ EHFRPHV WKH JHQHUDWLYH PDWUL[ IURP ZKLFK WKH FUHDWLRQ SURFHVV DQG LQ WXUQ PXVW DFW DV WKH FUHDWLYH PHGLDWRU RI WKH RWKHU FRQFHSWV DQG DIIHFWV DWWHPSWLQJ WR IRUPXODWH WKH WHUPV DQG D WUXO\ FUHDWLYH DFW DV RSSRVHG WR D UHSUHVHQWDWLRQDO DFW EORVVRPV FRQGLWLRQV RI WKH SURMHFW 7KH VHFRQG D[LV H[WHQGV EHWZHHQ WKH SUR &YHMLF·V FRQFHUQ LQ WKLV SDUWLFXODU DUWLFOH LV WZRIROG 2Q WKH RQH GXFWLRQ DQG WKH DXGLHQFH 7KLV UHODWLRQVKLS PXVW IXQFWLRQ LQ WKH VDPH KDQG VKH ZDQWV WR LPDJLQH WKH UROH RI WKH GUDPDWXUJ ZLWKLQ WKH FUH ZD\ LQVRIDU DV WKH DXGLHQFH PXVW DFW DV WKH FUHDWLYH PHGLDWRU RI WKH DWLYH SURFHVV 7R GR WKLV VKH LPDJLQHV WKH GUDPDWXUJ DV ´IULHQG RI SHUIRUPDQFH DQG DWWHPSW WR IDOVLI\ WKH LGHDV FRQFHSWV DIIHFWV RI WKH WKH SUREOHPµ DQG ´SUDFWLWLRQHU RI WKH PHWKRGRORJ\ RI SUREOHP µ E\ SHUIRUPDQFH ZKLFK LV WR VD\ WKDW HDFK DXGLHQFH PHPEHU ZLOO QHFHV ZKLFK VKH PHDQV WKH SHUVRQ ZKR DGYRFDWHV IRU H[SHULPHQWDWLRQ UH VDULO\ XQGHUVWDQG LQ LWV RZQ ZD\ WKH LGHDV FRQFHSWV DIIHFWV SURGXFHG MHFWV FRPSODFHQF\ DQG GHYLVHV WKH WHUPV LQ ZKLFK D ZRUNLQJ SURE E\ WKH SHUIRUPHUV 6R DV QRW WR GLVVROYH LQWR DQ HPSW\ UHODWLYLW\ OHP PD\ EH VWDWHG DQG WKH FRQGLWLRQV LQ ZKLFK WKDW SUREOHP PD\ EH WKH SHUIRUPDQFH DQG WKH DXGLHQFH·V FUHDWLYH UHODWLRQVKLS PXVW H[LVW VROYHG 2Q WKH RWKHU KDQG &YHMLF ZRQGHUV KRZ ZH PLJKW HP EH\RQG WKH GXUDWLRQ RI WKH SHUIRUPDQFH LQWR WKH GDLO\ OLYHV RI HDFK EUDFH GUDPDWXUJ\ DV D VSHFXODWLYH SUDFWLFH HPHUJLQJ IURP D À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·V OLQH RI LQTXLU\ WKRXJK E\ ZRUNLQJ WKURXJK WKH VSHFXODWLYH $FWLYH )ULHQGV RI WKH 3UREOHP DQG D 3URYRFDWLRQ IRU WKH )XWXUH SUDFWLFH RI GUDPDWXUJ\ ZH FDQ EHJLQ WR DUULYH DW D SUDFWLFDO PRGHO 'HOHX]H GHULYHV WKH LGHD RI D FUHDWLYH PHGLDWRU IURP KLV RZQ ZRUN :KLOH RXU SXUSRVH KHUH LV WR UHGLUHFW GUDPDWXUJLFDO WKLQNLQJ DZD\ IURP LQJ UHODWLRQVKLS ZLWK )HOL[ *XDWWDUL 7KH SRLQW RI VXFK D PHGLDWRU LV WR SHGDJRJ\ DQG WRZDUG SV\FKDJRJ\ ZH UHDGLO\ UHFRJQL]H WKDW WKHUH DUH JRDG UHÁHFW DQG UHIUDFW WKRXJKW ,Q DQ\ FUHDWLYH SDUWQHUVKLS HDFK FRO D QXPEHU RI WKHDWUH SUDFWLWLRQHUV LQ WKH 8 6 WKDW DOUHDG\ IXQFWLRQ WR ODERUDWRU EULQJV KLV WUXWK WR WKH WDEOH DQG DWWHPSWV WR PDQLIHVW WKDW WUXWK RQH H[WHQW RU DQRWKHU DORQJ WKH OLQHV WKDW ZH DUH DGYRFDWLQJ WKH ÀUVW WKURXJK D PDWHULDO SUDFWLFH 'HOHX]H SURGXFHV FRQFHSWV IRU H[DPSOH DQG VHFRQG D[HV QRWHG DERYH 7KHLU H[SHULPHQWDWLRQV ZLWK FRQVHQVXV ZKLOH &YHMLF DQG RWKHU GDQFHU SUDFWLWLRQHUV SURGXFH DUWLVWLF DIIHFWV ,Q PRGHOV RI WKHDWUH FUHDWLRQ DOLJQ ERWK &RUQHUVWRQH 7KHDWHU DQG WKH 5XGH WXUQ KRZHYHU HDFK FROODERUDWRU DFWV DV WKH ´IDOVLÀHUµ RI KLV SDUWQHUV· 0HFKDQLFDOV RIWHQ FDOOHG WKH ´5XGH 0HFKVµ ZLWK WKH VSLULW RI WKH ÀUVW WUXWKV LQVRIDU DV KH ZLOO SHUFHLYH DQ\ JLYHQ SUREOHP IURP D GLIIHUHQW D[LV HQYLVLRQLQJ DOO FRPSDQ\ PHPEHUV DV GUDPDWXUJV $OWKRXJK WKH UH SHUVSHFWLYH DQG EULQJ D GLIIHUHQW YRFDEXODU\ WR EHDU RQ WKH DFW RI VWDWLQJ VSHFWLYH PHPEHUV RI ERWK RI WKHVH FRPSDQLHV KDYH VSHFLÀF SURGXFWLRQ WKH SUREOHP 'HOHX]H KDV *XDWWDUL LQ WKLV UHVSHFW WKRXJK KH DOVR UHOLHV UROHV WR DGPLQLVWUDWH HDFK PHPEHU LV DOVR HPSRZHUHG HTXDOO\ LQ PDNLQJ RQ DUWLVWV VXFK DV 3URXVW RU %DFRQ DQG PDWKHPDWLFLDQV VXFK DV /HLE FHQWUDO GUDPDWXUJLFDO GHFLVLRQV IRU D SURGXFWLRQ ,Q &RUQHUVWRQH·V HDUO\ QL] &YHMLF KDV RWKHU GDQFHUV VXFK DV (V]WHU 6DODPRQ WKRXJK VKH DOVR FRPPXQLW\ EDVHG SURGXFWLRQV IRU H[DPSOH WKLV PHDQW WKDW QRW RQO\ DUH UHOLHV RQ SKLORVRSKHUV OLNH 'HOHX]H 5DQFLqUH DQG $JDPEHQ ´7KHUH·V RIÀFLDO FRPSDQ\ PHPEHUV SRVLWLRQHG DV FUHDWLYH PHGLDWRUV EXW VR WRR QR WUXWK WKDW GRHVQ·W ¶IDOVLI\· HVWDEOLVKHG LGHDV µ DUJXHV 'HOHX]H ´7R DUH ORFDO FRPPXQLW\ PHPEHUV WKDW KDYH WHPSRUDULO\ MRLQHG WKH &RUQHU VD\ WKDW ¶WUXWK LV FUHDWHG· LPSOLHV WKDW WKH SURGXFWLRQ RI WUXWK LQYROYHV VWRQH FROOHFWLYH IRU D JLYHQ SURGXFWLRQ .XIWLQHF 7KH 5XGH D VHULHV RI RSHUDWLRQV WKDW DPRXQW WR ZRUNLQJ RQ D PDWHULDO³VWULFWO\ 0HFKV WKRXJK QRW D FRPPXQLW\ EDVHG WKHDWUH HQJDJH LQ D VLPLODU SUDF VSHDNLQJ D VHULHV RI IDOVLÀFDWLRQVµ TXRWHG LQ &YHMLF (DFK IDOVL WLFH RI PHGLDWLRQ LQVRIDU DV WKH JURXS·V FRUH FRPSULVHV D JURXS RI DUWLVWV ÀFDWLRQ UHYHDOV WKH PLQLPDO GLIIHUHQFH ZLWKLQ DQ\ RQH SRLQW RI YLHZ WKDW DUH DOO FR SURGXFLQJ DUWLVWLF GLUHFWRUV ´FR SDGVµ ZKR HQJDJH LQ D DQG DOORZV HDFK LQGLYLGXDO WR SHUFHLYH KLV RU KHU RZQ WUXWKV IURP D SUDFWLFH WKDW WKH 5XGH 0HFKV UHIHU WR DV ´FROOHFWLYH GUDPDWXUJ\ µ $V FR SDG .LUN /\QQ H[SODLQV ´7KH FUHDWLYH WHDP DV D ZKROH LV WKH GUDPDWXUJ GLIIHUHQW SHUVSHFWLYH 5HYLHZ
1)050 +0)/ 8 4*440/ +3
)LJXUH (YHU\ +RXVH +DV D 'RRU 7KH\Ò&#x2039;UH 0HQGLQJ WKH *UHDW )RUHVW +LJKZD\ 3LFWXUHG IURP OHIW WR ULJKW -RKQ 5LFK &KDULVVD 7ROHQWLQR -HII +DUPV DQG 0DWWKHZ *RXOLVK
LQ RXU ZRUNµ /\QQ DQG 6LGHV %RWK WKH 5XGH 0HFKV DQG &RUQHU WKLV RIÃ&#x20AC;FLDO YHUVLRQ Ã&#x20AC;QDOO\ SUHPLHUHG EHIRUH DXGLHQFH PHPEHUV DW 7KH VWRQH KDYH DWWHPSWHG WR GHFHQWUDOL]H GUDPDWXUJLFDO SUDFWLFH E\ PDNLQJ 2II &HQWHU ZKR TXLWH SRVVLEO\ SDUWLFLSDWHG LQ GHYHORSLQJ WKH SURGXF DOO FRPSDQ\ PHPEHUV ´IULHQGV RI WKH SUREOHP µ WLRQ \HDUV HDUOLHU WKDW DXGLHQFH KDG D PRUH LQWULQVLF UHODWLRQVKLS ZLWK WKH SLHFH 7KH\ KDG EHHQ LQYLWHG WR EH FUHDWLYH PHGLDWRUV LQ WKH GHYHORSPHQW ,Q FRQVLGHUDWLRQ RI WKH VHFRQG D[LV ZKLFK HQYLVLRQV WKH DXGLHQFH PHP RI WKH WKHDWULFDO ZRUN EHUV WRR DV FUHDWLYH PHGLDWRUV WKH 5XGH 0HFKV DJDLQ SURYLGH DQ H[DP SOH 7KHLU FRZER\ WKHPHG PXVLFDO ,·YH 1HYHU %HHQ VR +DSS\ RIÃ&#x20AC;FLDOO\ 7KH 5XGH 0HFKV KDYH FLWHG D SURIHVVLRQDO LQWHUHVW LQ WKH ZRUN RI $QQH SUHPLHUHG LQ $SULO DW $XVWLQ·V 7KH 2II &HQWHU 7KH SUHVV VXUURXQG %RJDUW DQG WKH 6,7, &RPSDQ\ DQG QRW VXUSULVLQJO\ %RJDUW DQG 6,7, LQJ WKH SUHPLHUH GUHZ DWWHQWLRQ QRW RQO\ WR WKH SURGXFWLRQ·V ]DQ\ PLVH HQ WRR HQJDJHG WHQ \HDUV HDUOLHU LQ D GHYHORSPHQW SURFHVV WKDW DWWHPSWHG VFqQH DQG DQLPDWHG SURMHFWLRQV EXW DOVR WR WKH SURGXFWLRQ·V XQFRQYHQ WR SRVLWLRQ DXGLHQFH PHPEHUV DV FUHDWLYH PHGLDWRUV YLL ,Q 6,7, WLRQDO GHYHORSPHQW SURFHVV ,Q WKH\ SHUIRUPHG ZRUN LQ SURJUHVV ZDV UHKHDUVLQJ D SURGXFWLRQ RI 1RHO &RZDUG·V 3ULYDWH /LYHV LQ /RXLV VHOHFWLRQV IURP WKH PXVLFDO DW 7KH 2II &HQWHU :KHQ DXGLHQFH PHP YLOOH ,Q DQ HIIRUW WR VWXG\ WKH UHODWLRQVKLS EHWZHHQ DFWRUV DQG DXGLHQFH EHUV DUULYHG IRU WKH SHUIRUPDQFH ZKDW WKH\ PHW Ã&#x20AC;UVW ZDV DQ LQWHUDFWLYH %RJDUW GHFLGHG WR LQYLWH FLYLOLDQV WR EH DXGLHQFH WR WKH UHKHDUVDO SUR FRZER\ FDUQLYDO ´7KHDWUH JRHUV FRXOG OHDUQ WR PDNH URSH VLQJ FRXQWU\ FHVV 7KRVH ZKR FKRVH WR DWWHQG ZHUH DVNHG WR ZULWH QRWHV DQG SDUWLFL VRQJV NDUDRNH VW\OH GUHVV XS LQ :HVWHUQ ZHDU RU KDYH WKHLU SLFWXUH WDNHQ SDWH LQ LQWHUYLHZV ZLWK %RJDUW :KHQ WKH VKRZ ZHQW LQWR SHUIRUPDQFH LQ D FXWRXW RI DQ LQIDPRXV PRPHQW LQ 7H[DV KLVWRU\ OLNH WKH .HQQHG\ %RJDUW DOVR LQYLWHG WKH FLYLOLDQV WR SDUWLFLSDWH LQ DW OHDVW RQH SRVW VKRZ DVVDVVLQDWLRQ µ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·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´ERWK FRQVXPHUV DQG FUHDWRUVµ ´,QYLW YLL 7KH 5XGH 0HFKV PHQWLRQ WKHLU LQWHUHVW LQ %RJDUW DQG 6,7, GXULQJ D SRGFDVW GLV LQJ WKH $XGLHQFH WR WKH 5RGHRµ 0RUH VLJQLÃ&#x20AC;FDQWO\ KRZHYHU WKH 5XGH FXVVLRQ RI WKH 0HFKV· SLHFH 7KH 0HWKRG *XQ .UDPHU YLLL $V %RJDUW DQG 7LQD /DQGDX VWDWH LQ WKH SUHIDFH WR 7KH 9LHZSRLQWV %RRN ´(DFK RI XV 0HFKV REVHUYHG FDUHIXOO\ ZKDW WUDQVSLUHG GXULQJ WKH FDUQLYDO SRUWLRQV ZDV LQWURGXFHG WR 9LHZSRLQWV E\ DQRWKHU SHUVRQ $QQH IURP 0DU\ 2YHUOLH DW 1HZ <RUN RI WKH HYHQWV DQG GUHZ LGHDV DQG LQVSLUDWLRQ WKDW WKH\ IROGHG EDFN LQWR 8QLYHUVLW\ 7LQD IURP $QQH DW WKH $PHULFDQ 5HSHUWRU\ 7KHDWUHµ [L ,Q D ZD\ ZH PLJKW ZKDW EHFDPH WKH RIÃ&#x20AC;FLDO YHUVLRQ RI ,·YH 1HYHU %HHQ VR +DSS\ :KHQ FRQVLGHU %RJDUW DQG /DQGDX DV FUHDWLYH PHGLDWRUV RI 2YHUOLH·V RULJLQDO SUDFWLFH 5HYLHZ
1)050 +0)/ 8 4*440/ +3
ZD\ *RXOLVK UHPLQGV XV WKDW HDFK SRLQW RI HQWU\ ´RIIHUV D GLIIHUHQW GRRU VWDQGLQJ RSHQ IRU D GLIIHUHQW DXGLHQFH PHPEHU DV DQ LQYLWDWLRQ LQWR WKH KRXVH RI WKH SHUIRUPDQFHµ ´5HWXUQLQJ WR µ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Ã&#x20AC;UVW WR OHDUQ KRZ WR XQGHU VWDQG D SHUIRUPDQFH ZKLFK DJDLQ HQKDQFHV WKH UHODWLRQDO DVSHFW EHWZHHQ DXGLHQFH DQG WKHDWULFDO ZRUN :KHQ *RXOLVK VLJQV KLV ZULWLQJV ´0DWWKHZ *RXOLVK GUDPDWXUJ µ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·V VXEMHFWLYLW\ RYHU WLPH 7R HPDQFLSDWH SKLORVRSKLFDOO\ RU WR HPDQFLSDWH WKURXJK SKLORVR SK\ WKLV LV WKH WDVN ZH ZRXOG OLNH WR VHW IRU FRQWHPSRUDU\ GUDPD WXUJ\ 3HGDJRJLFDO GUDPDWXUJ\ GRHV RI FRXUVH IXQFWLRQ LQ DFFRU )LJXUH (YHU\ +RXVH +DV D 'RRU 7KH\Ò&#x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´WKLQNµ GUDPDWXUJ\ 3RVLWLRQHG DV VXFK SHGDJRJL WLYHO\ GUDPDWXUJV RI WKH SHUIRUPDQFH WKH\ ZHUH DXGLHQFH WR 2QH \HDU FDO GUDPDWXUJ\ LV D SURFHGXUH WKDW VXEMHFWLYDWHV LWV SDUWLFLSDQWV EXW HDUOLHU WKH\ KDG EHHQ LQYLWHG WR EH ´IULHQGV RI WKH SUREOHP µL[ LQDVPXFK DV LW GRHV QRW DOORZ LWVHOI WR EHFRPH RWKHU WKDQ LW LV LWV VXEMHFWLYDWLQJ SURFHVV LV HYHU WHWKHUHG WR KRPRJHQHLW\ 6XFK D GUD &RUQHUVWRQH WKH 5XGH 0HFKV DQG 6,7, DUH DOO FRPPHQGDEO\ PDN PDWXUJ\ LV SKLORVRSKLFDO EXW LV LQ QR ZD\ HPDQFLSDWRU\ LQJ HIIRUWV WR RSHQ XS WKH GUDPDWXUJLFDO WKLQNLQJ LQ ZD\V WKDW HPDQ FLSDWH FRPSDQ\ PHPEHUV DQG DXGLHQFHV ERWK <HW LQ QRQH RI WKHVH :H RIIHU WKH FKDOOHQJH RI WKLQNLQJ GUDPDWXUJ\ GLDOHFWLFDOO\ WKLQNLQJ H[DPSOHV KDYH ZH VHHQ WKH Ã&#x20AC;JXUH RI D SV\FKDJRJLFDO GUDPDWXUJ RI GUDPDWXUJ\ DV LWVHOI D SKLORVRSKLFDO SUDFWLFH 6XFK D GUDPDWXUJ\ )RU DQ H[DPSOH RI D GUDPDWXUJ DFWLYHO\ HQJDJHG LQ D SKLORVRSKLFDO DOVR VXEMHFWLYDWHV³ZKDW SUDFWLFH GRHVQ·W"³EXW LW GRHV VR ZLWK D FOHDU GUDPDWXUJLFDO SUDFWLFH ZH WXUQ WR 0DWWKHZ *RXOLVK *RXOLVK·V ZRUN DZDUHQHVV RI WKDW VXEMHFWLYDWLRQ DQG D IRUWKULJKW UHVLVWDQFH WR WKH IDFW ZLWK WKH FRPSDQ\ (YHU\ KRXVH KDV D GRRU HPSKDVL]HV D FUXFLDO GL RI LW 6XFK D GUDPDWXUJ\ UHFRJQL]HV WKDW WKH WUDQVSDUHQF\ RI SURFHVV PHQVLRQ RI SV\FKDJRJLFDO GUDPDWXUJ\ WKH GLPHQVLRQ RI LQYLWDWLRQ ZKLOH EHQHÃ&#x20AC;FLDO LV DOVR DOZD\V XQGHUPLQHG E\ LWV RZQ LQH[RUDEOH RSDFLW\ 6XFK D GUDPDWXUJ\ HPEUDFHV LWVHOI DV HPDQFLSDWRU\ EXW LW DOVR :KLOH LQYLWDWLRQ LV DQ DVSHFW RI WKH GUDPDWXUJLHV RI WKH FRPSDQLHV DOZD\V LQWHUURJDWHV HYHU\ UHFHVV RI WKH FRPIRUW DQG VWDELOLW\ SURYLGHG GLVFXVVHG DERYH *RXOLVK GLJV GHHSHU LQ KLV SKLORVRSKLFDO LQYHVW E\ WKDW HPEUDFH 6XFK D GUDPDWXUJ\ LV SV\FKDJRJLFDO GUDPDWXUJ\ PHQW LQ LW &UHDWHG ZLWK /LQ +L[VRQ WKH PLVVLRQ RI (YHU\ KRXVH KDV D GRRU LV WR ´FUHDWH SURMHFW VSHFLÃ&#x20AC;F FROODERUDWLYH SHUIRUPDQFHV ZLWK ,Q VKRUW WKH WKHDWUH GRHV QRW QHHG PRUH JKRVW OLJKWV QDPHG ´GUDPD LQYLWHG JXHVWVµ TWG LQ 3LFDUG $V GUDPDWXUJ *RXOLVK KHOSV WR FUDIW WXUJV µ ,QVWHDG LW QHHGV WR UHFRJQL]H WKH LOOXPLQDWLQJ FDSDFLW\ WKDW WKH JHVWXUH RI LQYLWDWLRQ WKURXJK ZULWLQJ DQG SHUIRUPLQJ LQ RUGHU WR DOUHDG\ H[LVWV ZLWK HYHU\RQH FRQQHFWHG WR WKH WKHDWULFDO HYHQW DQG WR RIIHU PXOWLSOH SRLQWV RI HQWU\ LQWR HDFK SHUIRUPDQFH 'LVFXVVLQJ WKH WKLQN PRUH LQFOXVLYHO\ DERXW WKDW FDSDFLW\ SHUIRUPDQFH HQWLWOHG 7KH\·UH 0HQGLQJ WKH *UHDW )RUHVW +LJK 7KH DXWKRUV ZRXOG OLNH WR H[SUHVV JUHDW WKDQNV WR /HR &DEUDQHV L[ )RU D GHWDLOHG GLVFXVVLRQ DQG DQDO\VLV RI WKH &DELQ 3UHVVXUH GHYHORSPHQW SURFHVV *UDQW %UDQLVODY -DNRYOMHYLF 0DULQ %ODçHYLþ DQG 0DWWKHZ *RXO LVK IRU WKHLU IHHGEDFN RQ HDUOLHU YHUVLRQV RI WKLV HVVD\ VHH +HUULQJWRQ 5HYLHZ
:25.6 &,7(' %LHW &KULVWLDQ ´7RZDUGV D 'UDPDWXUJ\ RI $SSHDUDQFH µ 3HUIRU PDQFH 5HVHDUFK
´,QYLWLQJ WKH $XGLHQFH WR WKH 5RGHR ,·YH 1HYHU %HHQ 6R +DSS\ µ ´ 1HZSOD\ )HVWLYDO µ 6XEWH[W $UHQD 6WDJH :HE $SU
,UHODQ 6FRWW 5 $QQH )OHWFKHU DQG -XOLH )HOLVH 'XELQHU 7KH 3UR %RHQLVFK 3HWHU 0 ´7RZDUGV D 7KHDWUH RI (QFRXQWHU DQG ([SHUL FHVV RI 'UDPDWXUJ\ $ +DQGERRN 1HZEXU\SRUW 0$ )RFXV 3XE HQFH 5HÁH[LYH 'UDPDWXUJLHV DQG &ODVVLF 7H[WV µ &RQWHPSRUDU\ OLVKLQJ 3ULQW 7KHDWUH 5HYLHZ ² 3ULQW .UDPHU (OL]DEHWK ´+XPDQD )HVWLYDO 7KH 0HWKRG *XQ µ 3RGFDVW %RJDUW $QQH DQG 7LQD /DQGDX 7KH 9LHZSRLQWV %RRN $ 3UDFWLFDO &ODVVLFDO :82/ 0DU :HE $SU *XLGH WR 9LHZSRLQWV DQG &RPSRVLWLRQ 1HZ <RUN 7KHDWUH &RP PXQLFDWLRQV *URXS 3ULQW .XIWLQHF 6RQMD 6WDJLQJ $PHULFD &RUQHUVWRQH DQG &RPPXQLW\ %DVHG 7KHDWHU (GZDUGVYLOOH ,/ 6RXWKHUQ ,OOLQRLV 83 3ULQW %URZQ /HQRUD ,QH] 7KH $UW RI $FWLYH 'UDPDWXUJ\ 7UDQVIRUPLQJ &ULWLFDO 7KRXJKW LQWR 'UDPDWLF $FWLRQ 1HZEXU\SRUW 0$ )RFXV .XQVW %RMDQD ´7KH (FRQRP\ RI 3UR[LPLW\ µ 3HUIRUPDQFH 5HVHDUFK 3XEOLVKLQJ 3ULQW &KHPHUV 0LFKDHO 0DUN *KRVW /LJKW $Q ,QWURGXFWRU\ +DQGERRN /\QQ .LUN DQG 6KDZQ 6LGHV ´&ROOHFWLYH 'UDPDWXUJ\ $ &R &RQVLG IRU 'UDPDWXUJ\ (GZDUGVYLOOH ,/ 6RXWKHUQ ,OOLQRLV 83 HUDWLRQ RI WKH 'UDPDWXUJLFDO 5ROH LQ &ROODERUDWLYH &UHDWLRQ µ 7KHDWUH 3ULQW 7RSLFV 3ULQW &RDNOH\ -DFRE DQG -HVVLFD +HDUG ´5XGH 0HFKV 3RGFDVW ,·YH 1HYHU 0D\DNRYVN\ 9ODGLPLU ´7KH &KDPSLRQVKLS RI WKH 8QLYHUVDO &ODVV %HHQ 6R +DSS\ µ ´6WDJH 'LUHFWLRQV µ 7KHDWUHIDFH 3XWWLQJ D )DFH 6WUXJJOH µ 3DJH LQ 'HiN )UDQWLåHN ´7KH &KDPSLRQVKLS RI WKH RQ 7KHDWHU 0DU :HE $SU 8QLYHUVDO &ODVV 6WUXJJOH µ 7KH 'UDPD 5HYLHZ 7'5 3ULQW &YHMLF %RMDQD ´7KH ,JQRUDQW 'UDPDWXUJ µ 0DVND 3ULQW 3LFDUG &DUROLQH ´&HQWHU )LHOG (PERG\LQJ (FKRHV $Q ,QWHUYLHZ ZLWK 0DWWKHZ *RXOLVK µ $UW %ORJ -XO :HE $SU 'HOHX]H *LOOHV 'LIIHUHQFH DQG 5HSHWLWLRQ 7UDQV 3DXO 3DWWRQ 1HZ <RUN &ROXPELD 83 3ULQW 5DGRVDYOMHYLþ 'XåND ´7KH 1HHG WR .HHS 0RYLQJ µ 3HUIRUPDQFH (FNHUVDOO 3HWHU )XMLL 6KLQWDUR 7DND\DPD $NLUD DQG +D\DVKL 7DW 5HVHDUFK 3ULQW VXNL ´2Q WKH 'UDPDWXUJLFDO )LHOG LQ 3RUW %·V 7RN\R ¶7RXU 3HUIRU PDQFHV ·µ 3HUIRUPDQFH 5HVHDUFK 5DQFLqUH -DFTXHV ´7KH (PDQFLSDWHG 6SHFWDWRU µ 7KH (PDQFLSDWHG 6SHFWDWRU 7UDQV *UHJRU\ (OLRW /RQGRQ 9HUVR 3ULQW )RXFDXOW 0LFKHO 7KH &RXUDJH RI 7UXWK 7KH *RYHUQPHQW RI 6HOI DQG 2WKHUV ,, /HFWXUHV DW WKH &ROOqJH GH )UDQFH 7KH ,JQRUDQW 6FKRROPDVWHU )LYH /HVVRQV LQ ,QWHOOHFWXDO 7UDQV *UDKDP %XUFKHOO /RQGRQ 3DOJUDYH 3ULQW (PDQFLSDWLRQ 7UDQV .ULVWLQ 5RVV 6WDQIRUG 6WDQIRUG 83 3ULQW 7KH *RYHUQPHQW RI 6HOI DQG 2WKHUV /HFWXUHV DW WKH &ROOqJH GH )UDQFH 7UDQV *UDKDP %XUFKHOO /RQGRQ 3DOJUDYH 6PLWK 3KLO ´%XUQLQJ WKH %R[ 2IÀFH µ 3HUIRUPDQFH 5HVHDUFK 3ULQW 3ULQW 7KH +HUPHQHXWLFV RI WKH 6XEMHFW /HFWXUHV DW WKH &ROOqJH 9DQ 5\]LQ -HDQQH &ODLUH ´)XVHER[ )HVWLYDO ,QFOXGHV ,QYHQWLYH GH )UDQFH 7UDQV *UDKDP %XUFKHOO 1HZ <RUN 3LFDGRU 5XGH 0HFKV 0XVLFDO µ $XVWLQ FRP &R[ 0HGLD *URXS $SU 3ULQW :HE $SU ´7KH 6XEMHFW DQG 3RZHU µ (VVHQWLDO :RUNV RI )RXFDXOW 3RZHU 7UDQV 5REHUW +XUOH\ DQG RWKHUV 1HZ <RUN 1HZ 3UHVV 3ULQW *RXOLVK 0DWWKHZ ´5HWXUQLQJ WR 7KH\·UH 0HQGLQJ WKH *UHDW )RUHVW +LJKZD\ µ %DG DW 6SRUWV &RQWHPSRUDU\ $UW 7DON )HE :HE $SU +HUULQJWRQ -RDQ ´%UHDWKLQJ &RPPRQ $LU 7KH 6,7, &RPSDQ\ &UHDWHV &DELQ 3UHVVXUH µ 7'5 3ULQW 5HYLHZ
1)050 ,&//: (3":
%JSFDUJOH -JLF B %SBNBUVSH 5IF "SU PG #FJOH B 8IBMF
E\ %HFN\ %HFNHU &ROXPEXV 6WDWH 8QLYHUVLW\ 7KH FDVW RI &RPSDxHUDV E\ .DWK\ &RXGOH .LQJ HQJDJHV LQ D ´GDQFH RI VXUYHLOODQFHµ XVLQJ EHG VKHHWV
%(&.< %(&.(5 KHDGV WKH %$ SURJUDP LQ WKHDWUH DW &ROXPEXV 6WDWH 8QLYHUVLW\ WHDFKLQJ FRXUVHV LQ WKHDWUH KLVWRU\ SOD\ZULWLQJ GHYLVLQJ SHUIRUPDQFH DQG GUDPD WXUJ\ ,Q VKH WRRN RQ WKH UROH RI &RRUGLQDWRU IRU WKH ,QWHUQDWLRQDO 6WXGLHV &HUWLÃ&#x20AC;FDWH IRU &68Ò&#x2039;V &HQWHU IRU ,QWHUQDWLRQDO (GXFDWLRQ %HFN\Ò&#x2039;V GLUHFWLQJ FUHGLWV LQFOXGH 2QFH 2Q 7KLV ,VODQG $ 0LGVXPPHU 1LJKWÒ&#x2039;V 'UHDP 7KH /DUDPLH 3URMHFW &RPSDxHUDV DQG PRVW UHFHQWO\ &DUROLQH RU &KDQJH 6KH KDV DOVR GHYLVHG VHYHUDO RUDO KLVWRU\ SHUIRUPDQFHV LQFOXGLQJ :HVWYLOOH &ROOHFWHG /LYHV GHVFULELQJ WKH IRXQGLQJ RI DQ KLVWRULF V YLOODJH LQ *HRUJLD DQG %LEE &LW\ &ROOHFWHG /LYHV )URP D 0LOO 7RZQ FKURQLFOLQJ PLOO OLIH RQ WKH &KDW WDKRRFKHH 5LYHU +HU SXEOLVKHG ZRUN PD\ EH IRXQG LQ 7KHDWUH -RXUQDO )HPLQLVW 7HDFKHU DQG 7KHDWUH 6\PSRVLXP
:KLOH , DP QRW IRUPDOO\ WUDLQHG DV D GUDPDWXUJ P\ DSSURDFK WR GLUHFWLQJ DFWLYHO\ LQYROYHV GUDPDWXUJLFDO VWUDWHJLHV , VHH WKHVH VWUDWHJLHV DV D ZD\ WR HQJDJH DFWRUV LQ WKH SURFHVV RI XQGHUVWDQGLQJ WKH VWRU\ WKH\ DUH DERXW WR WHOO³WR JHW LQVLGH WKH VWRU\ UDWKHU WKDQ PHUHO\ WR VSHDN WKURXJK LW³DQG WR XQGHUVWDQG KRZ EHVW WR JR DERXW VKDSLQJ WKH VWRU\ ,W JRHV ZLWKRXW VD\LQJ RI FRXUVH WKDW DOO JRRG GLUHFWRUV DQG GUDPDWXUJV HQJDJH LQ GUDPDWXUJ\ WKDW LV DFWLYH KRZHYHU QRW DOO UHKHDUVDO SURFHVVHV LPSOHPHQW GUDPDWXUJ\ DV DQ HIIHFWLYH VWUDWHJ\ /LNH PRVW GLUHFWRUV ZKHQ , DSSURDFK D QHZ WH[W , DQD O\]H WR XQGHUVWDQG QRW MXVW KRZ WR WHOO WKH VWRU\ EXW DOVR KRZ WR DSSURDFK WKH UHKHDUVDO SURFHVV 7\SLFDOO\ IRU PH WKLV PHDQV Ã&#x20AC;QGLQJ XQLTXH ZD\V RI EULQJLQJ UHVHDUFK UHODWHG WR WKH FRQWH[W DQG WKHPHV RI WKH SOD\ LQWR UHKHDUV DOV WR HQJDJH WKH DFWRUV· LPDJLQDWLRQV IRU WKH SXUSRVH RI FKDUDFWHU GHYHO RSPHQW ,W DOVR PHDQV Ã&#x20AC;QGLQJ ZD\V WR VKDSH WKH VWRU\ WKURXJK WKH OLYHG NLQHVWKHWLF H[SHULHQFHV ZH VKDUH LQ RXU SURFHVV ,I WKH ZRUN LV SDUWLFXODUO\ HIIHFWLYH LW LQYROYHV D ELW RI FRQVFLRXVQHVV UDLVLQJ RQ WKH VLGH )URP P\ SHUVSHFWLYH EHLQJ D GUDPDWXUJ LV WR DOZD\V EH LQ SURFHVV 7R TXRWH 5RPDUH %HDUGHQ ´, WKLQN WKH DUWLVW KDV WR EH VRPHWKLQJ OLNH D ZKDOH VZLPPLQJ ZLWK KLV PRXWK ZLGH RSHQ DEVRUELQJ HYHU\WKLQJ XQWLO KH KDV ZKDW KH UHDOO\ QHHGV :KHQ KH Ã&#x20AC;QGV WKDW KH FDQ VWDUW WR PDNH OLPLWDWLRQV $QG WKHQ KH UHDOO\ EHJLQV WR JURZµ ´%HDUGHQ DW D *ODQFHµ +HUH %HDUGHQ LV UHIHUULQJ WR WKH YLVXDO DUWLVW \HW KLV ZRUGV UHVRQDWH DV D NLQG RI PDQWUD IRU WKH GUDPDWXUJ %HDUGHQ·V XQGHUVWDQG LQJ RI ZKDW LW PHDQV WR EH DQ DUWLVW LV DNLQ WR DQWKURSRORJLVW &OLIIRUG *HHUW]·V FRQFHSWLRQ RI ´WKLFN GHVFULSWLRQ µ ZKLFK , XQGHUVWDQG WR EH D OD\HULQJ RI SHUVSHFWLYHV DQG NQRZOHGJH *HHUW] ,Q D UHKHDUVDO SURFHVV WKH VFULSW LV MXVW RQH WKLQ OD\HU RI LQIRUPDWLRQ :LWKLQ WKDW OD\HU DUH FOXHV WR RWKHU OD\HUV WKDW ZLWK H[SORUDWLRQ H[SHULPHQWDWLRQ DQG H[SDQVLRQ LQIRUP WKH Ã&#x20AC;UVW OD\HU ,W LV ZKHQ WKHVH YDULRXV OD\HUV FRQYHUJH LQ D WKLFN GHVFULSWLRQ WKDW DXGLHQFH PHPEHUV FDQ Ã&#x20AC;QG D VSDFH WR WUXO\ HQWHU LQWR WKH VWRU\ ,Q WKH FDVH RI WKH GUDPDWXUJ HYHU\WKLQJ ZH GR³IURP WKH QHZV VWRULHV ZH OLVWHQ WR RQ RXU ZD\ WR ZRUN WR WKH LPDJHV ZH VHH LQ WKH FRPPXQLW\ WKDW VXUURXQGV XV WR UHVHDUFKLQJ RXU ODWHVW REVHVVLRQ³WKH ZD\ ZH RSHQ RXUVHOYHV WR WKH ZRUOG EHFRPHV SDUW RI RXU SURFHVV $V ZH FRQWLQXDOO\ WDNH LQ WKH ZRUOG DURXQG XV
5HYLHZ
1)050 ,&//: (3":
\HDU LW KDV EHHQ VRPHZKDW GLIÃ&#x20AC;FXOW WR PHDQLQJIXOO\ HPSOR\ VWXGHQWV LQ WKH GUDPDWXUJLFDO SURFHVV WKRXJK LW LV DQ H[FLWLQJ QHZ SURVSHFW :KDW , KDYH WULHG WR GR DV D GLUHFWRU LV WR PRGHO WKLV DSSURDFK IRU PHPEHUV RI WKH FDVW DQG SURGXFWLRQ WHDP LQ OLHX RI D IXOO\ LQWHJUDWHG GUDPDWXUJ\ SURJUDP LQYROYLQJ VWXGHQWV ZKHQ LW LV UHDVRQDEOH WR GR VR ,Q OLJKW RI WKLV EDFNJURXQG LQ WKH SURFHVV IRU &RPSDxHUDV WKH VWXGHQW ZDQWHG WR EH PRUH LQYROYHG EXW JLYHQ KHU DOUHDG\ EXV\ VFKHGXOH ZDV XQDEOH WR DWWHQG PDQ\ UHKHDUVDOV .QRZLQJ KHU VWURQJ ZRUN DV D VWXGHQW UHVHDUFKHU DQG WKLQNHU , ZHOFRPHG WKH RSSRUWXQLW\ WR KDYH ZKDWHYHU OHYHO RI LQYROYH PHQW VKH ZDV DEOH WR RIIHU :KHQ VKH ZDV DEOH WR DWWHQG RXU VWXGHQW GUDPDWXUJ SUHVHQWHG KLVWRULFDO LQIRUPDWLRQ WR WKH FDVW UHJDUGLQJ WKH GLUW\ ZDUV LQ 8UXJXD\ DQG RWKHU FRXQWULHV LQ 6RXWK $PHULFD DV ZHOO DV RWKHU FRQWH[WXDO PDWHULDO IURP 8UXJXD\DQ FXOWXUH 6KH FROOHFWHG TXHVWLRQV IURP WKH FDVW LQ RUGHU WR LOOXPLQDWH REVFXUH WH[WXDO UHIHUHQFHV DQG ZKHQ VKH ZDV XQDEOH WR DWWHQG UHKHDUVDOV WKH )DFHERRN JURXS EHFDPH D YDOX DEOH UHSRVLWRU\ IRU KHU SRVWV 7KURXJK KHU ZRUN RQOLQH DV ZHOO DV SRVWV E\ PHPEHUV RI WKH FDVW DQG FUHZ WKH SURFHVV FRQWLQXHG HYHQ RXWVLGH WKH UHKHDUVDO URRP LQ D ZD\ WKDW VHUYHG WR VWUHQJWKHQ RXU FROODERUDWLRQ )LJXUH $QD FDVWV 7KH +RXVH RI %HUQDUGD $OED IRU WKH SULVRQÒ&#x2039;V 7KUHH .LQJÒ&#x2039;V 'D\ &HOHEUDWLRQ
2XU PXOWL IDFHWHG DSSURDFK WR GUDPDWXUJ\ ZDV LPSRUWDQW WR WKH SUR FHVV RQ PDQ\ OHYHOV %HFDXVH WKH DFWRUV UDQJHG IURP MXVW HLJKWHHQ WR KROGLQJ RQWR MXVW ZKDW ZH QHHG IRU HDFK QHZ HQGHDYRU ZH DUH OLNH WZHQW\ WZR LW PHDQW WKDW PRVW RI WKH UHODWLRQVKLSV DQG H[SHULHQFHV GH ZKDOHV FRQWLQXDOO\ LQ WKH SURFHVV RI VHHNLQJ ZKDW IHHGV XV ,Q MRLQLQJ SLFWHG LQ WKH VFULSW ZHUH ZHOO RXWVLGH WKHLU HPRWLRQDO NQRZOHGJH EDVH %HDUGHQ·V FRQFHSW RI WKH DUWLVW DV ZKDOH ZLWK *HHUW]·V FRQFHSW RI ´WKLFN 2I FRXUVH WKLV LV D W\SLFDO FKDOOHQJH LQ HGXFDWLRQDO WKHDWUH DQG RQH WKDW GHVFULSWLRQ µ , DP DGYRFDWLQJ IRU ´WKLFN GUDPDWXUJ\µ³D SURFHVV E\ ZH UHDGLO\ HPEUDFH ZLWK DOPRVW HYHU\ VFULSW 6WLOO &RPSDxHUDV SRVHG ZKLFK GLUHFWRU DQG GUDPDWXUJ FUHDWH D OD\HULQJ RI H[SHULHQFH IRU WKH WKH XQLTXH FKDOOHQJH RI EHLQJ RXWVLGH RXU FROOHFWLYH FXOWXUDO H[SHUL DFWRUV ZKR LQ WXUQ EULQJ WKLV ´WKLFNQHVVµ WR WKHLU ZRUN RQVWDJH HQFH DV ZHOO DV GHSLFWLQJ SULVRQ OLIH³VRPHWKLQJ DERXW ZKLFK PRVW FROOHJH VWXGHQWV DQG WKHDWUH SURIHVVRUV KDYH YHU\ OLWWOH DZDUHQHVV $ \HDU DJR , KDG WKH SULYLOHJH RI GLUHFWLQJ WKH ZLQQHU RI WKH /DUU\ $GGHG WR DOO RI WKLV ZDV WKH IDFW WKDW WKLV ZRXOG EH WKH SOD\·V Ã&#x20AC;UVW IXOO &RUVH 3OD\ZULWLQJ &RPSHWLWLRQ KRXVHG IRU D WLPH DW P\ XQLYHU SURGXFWLRQ 7KH SOD\·V FRPSOH[LW\ DQG QHZQHVV PDGH IRU D SURFHVV VLW\ &RPSDxHUDV E\ .DWK\ &RXGOH .LQJ LV DQ XQSXEOLVKHG SOD\ ULFK ZLWK RSSRUWXQLW\ IRU FRQFHQWUDWHG GUDPDWXUJLFDO LQWHUSOD\ EDVHG RQ WKH ´WHVWLPRQLRVµ RI D JURXS RI 8UXJXD\DQ ZRPHQ ZKR ZHUH ´GLVDSSHDUHGµ GXULQJ WKH GLUW\ ZDUV RI WKH V LQ 6RXWK 6LQFH WKLV ZDV WR EH WKH Ã&#x20AC;UVW SURGXFWLRQ RI &RPSDxHUDV , ZDV SDLQ $PHULFD &RXGOH .LQJ ZDV LQVSLUHG WR ZULWH WKH SOD\ DIWHU KHDULQJ IXOO\ DZDUH RI VXSSRUWLQJ WKH SOD\·V GUDPDWXUJLFDO LQWHJULW\ 1HZ SOD\V LQWHUYLHZHU 'U (OL]DEHWK +DPSVWHQ VSHDN DERXW KHU H[SHULHQFHV UHDOO\ DUH OLNH EDELHV³HDFK LV XQLTXH DQG PXVW EH FDUHG IRU ZLWK D FROOHFWLQJ WKH WHVWLPRQLRV 7KH FKDUDFWHUV UHSUHVHQWHG LQ WKH SOD\ GHHS XQGHUVWDQGLQJ RI LWV HVVHQFH :KLOH VRPH SOD\ZULWLQJ FRPSHWL DUH FRPSRVLWHV RI VHYHUDO LQWHUYLHZHHV DQG WKHLU VWRULHV OHQGLQJ WLRQV VXSSRUW D ZRUNVKRS SURFHVV OHDGLQJ XS WR IXOO SURGXFWLRQ RQH WR WKH SOD\·V RYHUDOO FRPSOH[LW\ 7KH SOD\ IRFXVHV RQ D ZRPHQ·V RI WKH XQLTXH DVSHFWV RI WKH /DUU\ &RUVH 3OD\ZULWLQJ &RPSHWLWLRQ KDV SULVRQ DQG WKH VHYHQ ´GLVDSSHDUHG µ DV ZHOO DV D IHPDOH JXDUG DQG EHHQ LWV FRPPLWPHQW WR D IXOO SURGXFWLRQ RI WKH ZLQQLQJ SOD\ ZLWKRXW PDOH FDSWDLQ RYHUVHHLQJ WKH SULVRQ ZKLOH WKH ZRPHQ UHKHDUVH WR ZRUNVKRSV RU VWDJHG UHDGLQJV WR LQIRUP D Ã&#x20AC;QDO SURGXFWLRQ )RU D SOD\ SUHVHQW D SOD\ 7KH +RXVH RI %HUQDUGD $OED E\ )HGHULFR *DUFLD OLNH &RPSDxHUDV WKLV LV ERWK H[FLWLQJ DQG D ELW GDXQWLQJ SDUWLFXODUO\ /RUFD IRU WKHLU FHOO EORFN·V 7KUHH .LQJ·V 'D\ FHOHEUDWLRQ &RPSD JLYHQ WKH VWDJH RI WKH VFULSW ZKHQ , UHFHLYHG LW )XOO SURGXFWLRQV DUH xHUDV WKHDWULFDOO\ ZHDYHV WKH ZRPHQ·V EDFNJURXQG VWRULHV WRJHWKHU LQFUHGLEO\ YDOXDEOH WR SOD\ZULJKWV ZKR FDQ OHDUQ VR PXFK PRUH DERXW ZKLOH UHYHDOLQJ WKH EUXWDOLW\ DQG KLGGHQ EOHVVLQJV RI SULVRQ OLIH WKHLU ZRUN VHHLQJ LW LQ IXOO IRUP )XOO SURGXFWLRQV DUH DOVR GLIÃ&#x20AC;FXOW WR SURFXUH DQG DUH RIWHQ WKH URXWH WR VXEVHTXHQW SURGXFWLRQV +RZHYHU ,Q SUHSDULQJ WR GLUHFW &RPSDxHUDV , NQHZ WKDW , ZRXOG QHHG WR HQJDJH LQ LI D SOD\ LV QRW DW WKH ULJKW VWDJH IRU IXOO SURGXFWLRQ RU LI WKH SURGXFWLRQ D PRUH LQWHQVLYHO\ GUDPDWXUJLFDO DSSURDFK WKDQ LV W\SLFDO HYHQ IRU PH LV QRW WUXH WR WKH HVVHQFH RI WKH SOD\ZULJKW·V ZRUN LW FDQ GR SRWHQWLDO DV D GLUHFWRU :KLOH WKH SURGXFWLRQ GLG HPSOR\ D VWXGHQW GUDPDWXUJ ZKR GDPDJH WR D SOD\ LWV UHSXWDWLRQ RU WKH SOD\ZULJKW·V FDUHHU ZRUNHG GLOLJHQWO\ WR VXSSOHPHQW RXU UHVHDUFK DQG FUHDWH D OREE\ GLVSOD\ WKLV SOD\ UHTXLUHG ´WKLFN GUDPDWXUJ\ µ ZKLFK PHDQW WKDW ZH ZRXOG QHHG ,Q WKH FDVH RI &RPSDxHUDV WKH SOD\ UHDG TXLWH EHDXWLIXOO\ DQG WKHDWUL WR ZRUN LQ WDQGHP $ ELW RI EDFNJURXQG PLJKW EH KHOSIXO LQ XQGHUVWDQG FDOO\ FRQMXULQJ VWURQJ LPDJHU\ DQG UHODWLRQVKLSV XSRQ P\ Ã&#x20AC;UVW UHDG DQG LQJ WKH UROH RI WKH GUDPDWXUJ LQ P\ GHSDUWPHQW :LWKLQ RXU SURJUDP VWX VXEVHTXHQW UHDGLQJV <HW LQ GHOYLQJ PRUH GHHSO\ LQWR WKH SOD\·V VWUXF GHQW GUDPDWXUJ\ KDV QRW KDG D VLJQLÃ&#x20AC;FDQW UROH XQWLO YHU\ UHFHQWO\ :KHQ WXUH RQH DVSHFW RI WKH VFULSW VWRRG RXW DV SUHVHQWLQJ WKH JUHDWHVW FKDO , FDPH WR &68 VHYHQ \HDUV DJR , DP IDLUO\ FHUWDLQ WKDW , ZDV WKH DPRQJ OHQJH³DQG SHUKDSV QRW VXUSULVLQJO\ DOVR RQH RI LWV JUHDWHVW WULXPSKV LQ WKH Ã&#x20AC;UVW SURIHVVRUV WR XVH WKH WHUP OHW DORQH DVVLJQ ZRUN WR IRVWHU LWV WHUPV RI DFWLRQ &RXGOH .LQJ·V SOD\ PRYHV YHU\ TXLFNO\ WKURXJK D VHULHV XQGHUVWDQGLQJ DV D GLVFLSOLQH DQG UROH ZLWKLQ WKHDWUH :KHQ LW KDV EHHQ RI DFWLRQ Ã&#x20AC;OOHG VFHQHV³WKH ZRPHQ EHLQJ UHSULPDQGHG DQG SK\VLFDOO\ SRVVLEOH WR LQYROYH VWXGHQWV ZKR KDYH ERWK WKH SUHSDUDWLRQ DQG GHVLUH VHDUFKHG IRU D VWROHQ NLWFKHQ NQLIH WKH ZRPHQ GLYLGLQJ XS VSHDNLQJ SDUWV LQ GUDPDWXUJLFDO ZRUN , KDYH DFWHG WR PDNH LW KDSSHQ 6LQFH RXU SURJUDP IRU WKH SOD\ WKH ZRPHQ ZDWFKLQJ KHOSOHVVO\ DV RQH RI WKHLU FRPSDxHUDV LV DERXW WR RIIHU LWV Ã&#x20AC;UVW FRXUVH LQ GUDPDWXUJ\ RQO\ QRZ LQ WKH FRPLQJ LV GUDJJHG DZD\ WR VROLWDU\ FRQÃ&#x20AC;QHPHQW DQG VR RQ )LJXUH 7KH UDSLG 5HYLHZ
1)050 ,&//: (3":
)LJXUH 3ULVRQHUV 6XVDQD DQG 0DULD VKDUH WKHLU DEGXFWLRQ VWRULHV LQWHUPL[LQJ GLDORJXH ZLWK GDQFH WKHLU EHVW FRSLQJ PHFKDQLVP
ÀUH DFWLRQ DQG TXLFN PRYHPHQW IURP VFHQH WR VFHQH PDNHV LW VRPHZKDW GLIÀFXOW WR IXOO\ UHDOL]H WKH UHODWLRQVKLSV DPRQJ WKH ZRPHQ³VRPHWKLQJ VR YLWDO WR WKH VFULSW DQG LQ GHYHORSLQJ D FRQQHFWLRQ ZLWK WKH DXGLHQFH +RZHYHU HDUO\ LQ WKH VFULSW RQH RI &RXGOH .LQJ·V VWDJH GLUHFWLRQV VXJ JHVWHG D ZD\ WR FRPPXQLFDWH WKRVH UHODWLRQVKLSV LQ SHUIRUPDQFH XOWL PDWHO\ HQULFKLQJ WR RXU HQWLUH SURFHVV ,PPHGLDWHO\ IROORZLQJ WKH À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
:KLOH WKH VFULSW GRHV QRW FRQWDLQ PDQ\ VSHFLÀF UHIHUHQFHV WR PR PHQWV RI WUDQVLWLRQDO GDQFH WKLV VLQJOH VWDJH GLUHFWLRQ EHFDPH D YLWDO VSULQJERDUG WR WKH XVH RI GDQFH LQ RXU SURGXFWLRQ³RQH WKDW KHOSHG WR VROYH WKH LVVXH RI ÁHHWLQJ FKDUDFWHU GHYHORSPHQW DQG DW WLPHV QRPLQDOO\ VXSSRUWHG FRQQHFWLRQV EHWZHHQ FKDUDFWHUV 8QGHUVWDQGLQJ WKH GDQFH DV D YLEUDQW DVSHFW RI WKH SOD\·V VWUXFWXUH ZDV DQ LPSRUWDQW ÀUVW VWHS LQ YLVXDOL]LQJ KRZ WKH SOD\ PLJKW ZRUN EHVW LQ RXU VWXGLR VSDFH EXW WKHUH ZHUH VWLOO PDQ\ RWKHU FKDOOHQJHV SRVHG ZLWKLQ WKH VFULSW WKDW SRLQWHG WR ´WKLFN GUDPDWXUJ\µ DV DQ DSSURDFK WR EULQJLQJ LW WR OLIH RQ VWDJH $IWHU FDVWLQJ WKH SOD\ ODWH GXULQJ 6SULQJ LQ SUHSDUDWLRQ IRU RXU IDOO VHDVRQ IRU ZKLFK &RPSDxHUDV ZRXOG EH WKH ÀUVW SURGXFWLRQ 5HYLHZ
, SODQQHG D WKUHH SKDVH SURFHVV WKDW ZRXOG SURYLGH DOO RI XV ZLWK WKH QHF HVVDU\ WRROV WR JLYH WKH SOD\ D VWURQJ IXOO SURGXFWLRQ 3KDVH 2QH RU ´%RRW &DPS µ DV , EHJDQ UHIHUULQJ WR LW WKDW VSULQJ ZRXOG FRQVLVW RI D WKUHH GD\ LQWHQVLYH UHKHDUVDO SHULRG EHIRUH FODVVHV EHJDQ LQ )DOO 3KDVH 7ZR , KDYH ODWHQWO\ FKRVHQ WR FDOO ´'DQFH &DPS µ VLQFH GDQFH EHFDPH WKH FRQ QHFWLYH WLVVXH RI WKH SOD\ DQG LQYROYHG PXOWLSOH FKRUHRJUDSK\ VHVVLRQV WR ZHDYH WKH DFWLRQ WRJHWKHU 3KDVH 7KUHH , ZLOO UHIHU WR DV ´5HDOLW\ &DPS µ VLQFH WKH ODWWHU SRUWLRQ RI RXU UHKHDUVDO SURFHVV LQYROYHG LQWHUDFWLQJ RQ D PRUH SHUVRQDO OHYHO ZLWK WKH UHDOLW\ RI WKH ´GLVDSSHDUHG µ ,Q SUHSDUDWLRQ IRU 3KDVH 2QH %RRW &DPS WKH FDVW VWDJH PDQDJHU DQG , PHW IRU D UHDG WKURXJK RI &RPSDxHUDV MXVW DV VSULQJ VHPHVWHU ZDV HQGLQJ $W WKDW WLPH , JDYH WKHP D VPDOO VXPPHU UHDGLQJ SDFNHW FRQVLVWLQJ RI /RUFD·V SOD\ 7KH +RXVH RI %HUQDUGD $OED DQ DUWLFOH E\ )UDQFHVFD /HVVD HQWLWOHG ´7KH 0DQ\ )DFHV RI ,PSXQLW\ D %ULHI +LV WRU\ RI 8UXJXD\·V ([SLU\ /DZ µ DV ZHOO DV D VKRUW KLVWRU\ RI 8UXJXD\ DQG D EORJ HQWU\ UHÁHFWLQJ RQ KRZ EHDXW\ VXUYLYHV HYHQ LQ WKH PLGVW RI RSSUHVVLRQ DQG GHJUDGDWLRQ ,Q WDONLQJ ZLWK WKH FDVW , H[SODLQHG WKDW WKHVH IHZ SLHFHV RI ZULWLQJ ZHUH LQWHQGHG WR EH D FDWDO\VW IRU WKHLU RZQ UHVHDUFK DQG UHÁHFWLRQ DV ZHOO DV RXU FROODERUDWLYH UHVHDUFK DQG H[SHUL HQFHV DV D JURXS³HYHQ EHIRUH WKH UHKHDUVDO SHULRG EHJDQ ,Q RUGHU WR SURYLGH D SODWIRUP IRU GLVFXVVLRQV WKDW FRXOG GHYHORS DV ZHOO DV PDWHUL DOV WKDW FRXOG EH VKDUHG GXULQJ WKH VXPPHU , FUHDWHG WKH )DFHERRN JURXS LQ HDUO\ -XO\ HQWLWOHG ´&RPSDxHUDV µ WKDW ZRXOG VHUYH DV DQ LPSRUWDQW FRQQHFWRU EHIRUH GXULQJ DQG HYHQ ORQJ DIWHU WKH SURGXFWLRQ FORVHG %\ WKH WLPH %RRW &DPS DUULYHG LQ HDUO\ $XJXVW D KHDOWK\ FRQYHUVDWLRQ KDG GHYHORSHG RQ )DFHERRN ZH KDG D PRGLÀHG WKUXVW JURXQG SODQ DOORZ LQJ IRU JUHDW LQWLPDF\ ZLWK WKH DXGLHQFH DQG , KDG SODQQHG DQ LQWHQVLYH WKUHH GD\V RI DFWLYLWLHV IRU WKH FDVW :H EHJDQ %RRW &DPS ZLWK DQRWKHU UHDG WKURXJK RI WKH SOD\ DV ZHOO DV EULHI GLVFXVVLRQ RI PDWHULDOV DVVLJQHG RYHU WKH VXPPHU 7KHVH HDUO\ GLVFXVVLRQV KHOSHG WR HVWDEOLVK D VROLG EDVH RI NQRZOHGJH UHJDUGLQJ 8UXJXD\ DQG WKH GLUW\ ZDUV DV ZHOO DV D PRRG RI JLYH DQG WDNH WKDW EHFDPH DQ LPSRUWDQW YDOXH IRU WKH UHKHDUVDO SURFHVV 2IWHQ DIWHU WKHVH EULHI GLVFXVVLRQV ZH ZRXOG IROORZ XS ZLWK D SK\VLFDO DF
1)050 ,&//: (3":
FKDUDFWHUV IRU &RPSDxHUDV LQFOXGHV VHYHUDO SULVRQ JXDUGV DQ DXWKRULWDULDQ &DSWDLQ DQG D WUDLWRU DPRQJVW WKH ZRPHQ HPSDWK\ IRU ERWK ´VLGHVµ RI WKH FRQÁLFW ZDV SDUWLFXODUO\ LPSRUWDQW 3UHSDULQJ IRU WKH UHKHDUVDO SURFHVV , KDG ZULW WHQ GRZQ D TXRWH IURP %RDO ´WKH HVVHQFH RI WKHDWULFDOLW\ LV WKH FRQÁLFW RI ZLOOVµ *DPHV IRU $FWRUV 1RWKLQJ FRXOG EH WUXHU RI WKH FKDUDFWHUV GHSLFWHG LQ &RPSDxHUDV RU WKH HYHQWV WKDW LQVSLUHG WKH SOD\
)LJXUH /LGLD IRUHJURXQG SUHSDUHV IRU EHG DORQJ ZLWK WKH RWKHU LQPDWHV DV WKH SULVRQ JXDUGV ZDWFK RYHU WKHP
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´URRNLH µ WRRN XV WKURXJK HYHU\ SDUW RI WKH SULVRQ ZKHUH ZH ZHUH DOORZHG DFFHVV
WLYLW\ RU LPSURYLVDWLRQDO H[HUFLVH EDVHG RQ WKH LGHDV FLUFXODWHG )RU H[DP SOH IROORZLQJ D GLVFXVVLRQ RI SULVRQ FRQGLWLRQV WKH FDVW XVHG EORFNV DQG RWKHU LWHPV LQ WKH URRP WR FUHDWH WKHLU RZQ SULVRQ DQG HQJDJH LQ DQ LPSUR YLVDWLRQ RI GDLO\ SULVRQ OLIH $IWHU GLVFXVVLQJ /RUFD·V +RXVH RI %HUQDUGD $OED DQG WKH ZD\V LQ ZKLFK LW SDUDOOHOV FKDUDFWHUV DQG WKHPHV LQ &RPSD xHUDV ZH ZDONHG WKURXJK VFHQHV RI WKH SOD\ ZLWKLQ D SOD\ 8QOLNH VRPH UHKHDUVDO SURFHVVHV LQ ZKLFK FROODERUDWRUV FDQ JHW ERJJHG GRZQ LQ WRR PXFK WDON³VRPHWKLQJ , KDYH EHHQ JXLOW\ RI P\VHOI DW WLPHV³WKH %RRW &DPS KHOSHG XV WR VWULNH D JRRG EDODQFH 'UDPDWXUJ\ LQ DFWLRQ 7KLV JLYH DQG WDNH EHWZHHQ UHVHDUFK DQG NLQHVWKHWLF H[SHULHQFH EHFDPH D VWUDWHJ\ WKURXJK ZKLFK ´WKLFN GUDPDWXUJ\µ ÁRXULVKHG DOORZLQJ XV WR GHYHORS OD\ HUV RI PXWXDO XQGHUVWDQGLQJ ERWK LQWHOOHFWXDO DQG SK\VLFDO
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xHUDV DV ZHOO DV WKH GLP ODQJXLG TXDOLW\ RI OLJKW $ ELW IXUWKHU DORQJ RQ WKH WRXU ZH FRXOG DOVR FKRRVH WR EH SODFHG LQ ´VROLWDU\µ MXVW IRU D IHZ PRPHQWV WR IHHO WKH GDUNQHVV DQG VLOHQFH :KLOH WKH WRXU FRQWLQXHG WR PRUH XSGDWHG VWDWH RI WKH DUW DUHDV RI WKH MDLO RXU H[SHULHQFHV LQ WKH ROG SDUW RI WKH EXLOGLQJ KHOSHG WR LQIRUP RXU ,Q DGGLWLRQ WR VWULNLQJ D EDODQFH EHWZHHQ GLVFXVVLRQ DQG LPSURYLVDWLRQ FROOHFWLYH XQGHUVWDQGLQJ RI ZKDW VRPH RI WKH SULVRQV RI WKH ´GLVDSSHDUHGµ ZH VSHQW D JRRG SRUWLRQ RI WKH %RRW &DPS HQJDJHG LQ H[HUFLVHV LQ PD\ KDYH EHHQ OLNH ZLWK LWV V DUFKLWHFWXUH DQG FHPHQW EORFNV VSLUHG E\ $XJXVWR %RDO·V 7KHDWUH RI WKH 2SSUHVVHG DQG *DPHV IRU $F WRUV DQG 1RQ $FWRUV 6RPH RI WKHVH H[HUFLVHV ZHUH LQWHQGHG WR SURPRWH $OO WROG ZH VSHQW WKUHH KRXUV WRXULQJ WKH MDLO REVHUYLQJ SURFHGXUHV WHDP EXLOGLQJ VXFK DV ´7KH *ODVV &REUDµ *DPHV IRU $FWRUV EHLQJ RJOHG E\ LQPDWHV OHDUQLQJ WKH KLVWRU\ RI WKH MDLO DQG DVNLQJ RXU DQG ´7KH 0DFKLQH RI 5K\WKPVµ +RZHYHU RWKHUV ZHUH VHOHFWHG RIÀFHU WRXU JXLGHV TXHVWLRQV 7ZR RWKHU IRUPDWLYH PRPHQWV RFFXUUHG DQG VHTXHQFHG LQ RUGHU WR HDVH WKH FDVW LQWR H[SORULQJ SRZHU UHODWLRQ ODWH LQ WKH WRXU WKH ÀUVW EHLQJ D YLVLW WR WKH ZRPHQ·V VHFWLRQ RI WKH MDLO VKLSV RI WKH SULVRQ HQYLURQPHQW GHSLFWHG LQ &RPSDxHUDV ´&RPSOHWH ,QWHUHVWLQJO\ ZH ZHUH UHTXLUHG WR VSOLW RII IURP WKH WZR PHQ LQ RXU WKH ,PDJHµ EHFDPH DQ LPSRUWDQW WRRO IRU GHYHORSLQJ SK\VLFDO UHODWLRQ VPDOO JURXS³D VFHQDULR WKDW ZRXOG EH UHSHDWHG LQ UHKHDUVDOV ODWHU WR VKLSV EHWZHHQ YDULRXV FKDUDFWHU SDLULQJV 'HSHQGLQJ XSRQ ZKLFK EXLOG VROLGDULW\ DPRQJ WKH LQPDWHV YHUVXV WKH JXDUGV LQ WKH SOD\ 7KHUH WZR FKDUDFWHUV ZHUH SDLUHG LQ WKLV VLOHQW LPDJH RULHQWHG H[HUFLVH WKH ZH HQFRXQWHUHG D \RXQJ ZRPDQ ZKR WDONHG EULHÁ\ ZLWK D FRXSOH RI SRZHU G\QDPLFV ZHUH HJDOLWDULDQ RU YHU\ FOHDUO\ ´PDVWHU VHUYDQW µ $Q FDVW PHPEHUV PRVWO\ WR WHOO WKHP QHYHU WR HQG XS ZKHUH VKH ZDV $Q RWKHU PRUH LQWHQVH H[HUFLVH WKDW , XVHG ZLWK JUHDW FDXWLRQ LV D YDULDWLRQ RWKHU IRUPDWLYH PRPHQW QHDU WKH YHU\ HQG RI WKH WRXU ZDV RXU YLVLW WR D RQ RQH , KDG OHDUQHG LQ D ZRUNVKRS ZLWK %RDO \HDUV DJR WKDW , KDYH FHQWUDO URRP LQ WKH MDLO ÀOOHG ZLWK PRQLWRUV DQG SURWHFWHG ZLWK GRXEOH FRPH WR UHIHU WR DV ´2SSUHVVRU 2SSUHVVHG µ 7KH H[HUFLVH EHJLQV VLOHQWO\ SDQHG JODVV :KLOH JDWKHUHG LQ WKLV URRP ZH ZHUH SURPLQHQWO\ RQ DQG PRYHV RYHU D VHTXHQFH RI SURPSWV WR ZRUGV 3DUWQHUV DUH DVNHG GLVSOD\ DQG WKH PDOH LQPDWHV RQ WKH RWKHU VLGHV RI WKH JODVV ZDQGHUHG WR GHFLGH ZKLFK SHUVRQ ZLOO HQDFW WKHLU SHUFHSWLRQ RI RSSUHVVLRQ ÀUVW QHDUHU WR ORRN DW XV /DWHU EDFN LQ UHKHDUVDO ZH GLVFXVVHG WKH ´H[ IROORZLQJ D VHULHV RI SURPSWV SURYLGHG E\ WKH VLGH FRDFK RU ´MRNHU µ SRVHGµ IHHOLQJ WKDW WKLV VLWXDWLRQ FUHDWHG DV ZHOO DV WKH SRZHU G\QDPLF LQ WKLV FDVH PH 7KH RWKHU SDUWQHU·V UROH LV WR ´UHFHLYHµ WKHLU SDUWQHU·V RI WKH ´ZDWFKHUVµ DQG WKH ´ZDWFKHGµ )LJXUH 2XU YLVLW WR WKH MDLO ´RSSUHVVLYHµ SK\VLFDO JHVWXUHV UHVSRQGLQJ RQO\ ZLWK WKH VDPH OHYHO RI PDGH D SURIRXQG LPSDFW RQ RXU UHKHDUVDO SURFHVV $V D JURXS³FDVW SK\VLFDOLW\ SURPSWHG E\ WKH ´MRNHU µ 7KURXJK WKH H[HUFLVH SDUWLFLSDQWV VWDJH PDQDJHUV DQG GLUHFWRU DOLNH³ZH KDG D FRPPRQ H[SHULHQFH WR DUH DVNHG WR HPSDWKL]H ZLWK WKH RSSUHVVRU HYHQ DV WKH\ XQGHUVWDQG WKH UHIHU EDFN WR LQ PRPHQWV ZKHQ ZH IRXQG WKH FKDUDFWHUV· H[SHULHQFHV LPSDFW KLV KHU EHKDYLRU KDV RQ WKH RSSUHVVHG *LYHQ WKDW WKH FDVW RI SDUWLFXODUO\ GLIÀFXOW WR FRQQHFW WR DQG RQH WKDW KDG EHHQ IRUHLJQ WR XV 5HYLHZ
SULRU WR WKH WRXU :KLOH QRQH RI XV FDQ SURIHVV WR XQGHUVWDQG ZKDW LW PHDQV WR EH DQ LQPDWH³DQG SDUWLFXODUO\ RQH ZKR LV XQODZIXOO\ LP SULVRQHG DV WKH ´GLVDSSHDUHGµ ZHUH³ZH JOLPSVHG IRU MXVW D IHZ KRXUV WKH SRZHU G\QDPLFV DQG VHQVDWLRQV RI LVRODWLRQ HQDFWHG LQ SULVRQ OLIH ´7KLFN GUDPDWXUJ\µ LQ DFWLRQ WKLV H[SHULHQFH RIIHUHG D OD\HU RI H[SHUL HQFH WKDW , VXVSHFW DOORZHG IRU PRUH LPPHGLDF\ LQ WKH DFWRUV· DELOLW\ WR FRPPXQLFDWH PRRG WR DQ DXGLHQFH
$PRQJ WKH PRVW GLIÀFXOW VFHQHV WR VWDJH ZHUH WKRVH LQYROYLQJ GDQFH EXW WKH GDQFH DOVR IXQFWLRQHG DV D VXVSHQVH EXLOGLQJ PHFKDQLVP WKDW VXSSRUWHG WKH SOD\·V DFWLRQ ,Q DQ HDUO\ VFHQH IROORZLQJ WKH VHDUFK IRU WKH NLWFKHQ NQLIH WZR RI WKH ´GLVDSSHDUHG µ 6XVDQD DQG 0DULD VKDUHG WKHLU VWRULHV RI EHLQJ VWROHQ IURP GDLO\ OLIH³WKH ODWWHU HYHQ VHSDUDWHG IURP KHU EDE\ :LWK WKLV LQLWLDO XVH RI GDQFH LQ VFHQH RQH &RXGOH .LQJ KDG LQFOXGHG WKH SUHYLRXVO\ UHIHUHQFHG VWDJH GLUHFWLRQ ZKLFK LQGLFDWHG WKDW GDQFH VKRXOG EH ZRYHQ LQWR 6XVDQD DQG 0DULD·V VFHQH 7KH FKDOOHQJH RI WKLV VFHQH LQ SDUW ZDV WKH HPRWLRQDO FRQWH[W RI WKH FKDUDFWHUV VKDULQJ WKH KDUURZLQJ H[SHULHQFH RI EHLQJ ´GLVDSSHDUHGµ ZLWK WKH DXGLHQFH &RXSOHG ZLWK WKLV WKH VLPSOH EXW FDUHIXOO\ WLPHG SDUWQHU GDQFH ZH FKRVH WR ZHDYH LQWR WKHLU VWRULHV DGGHG WR WKH VFHQH·V GHSWK DQG FRPSOH[LW\ HVWDEOLVKLQJ D VWURQJ UHODWLRQVKLS EHWZHHQ WKH FKDUDFWHUV³DQG XOWLPDWHO\ WKH DFWRUV
1)050 ,&//: (3":
2XU MRXUQH\ WKURXJK WKH MDLO LQIRUPHG WKH HYHQWXDO IUDPLQJ RI WKH SOD\ LQ RXU FKRLFH WR WUHDW DXGLHQFH PHPEHUV DV LI WKH\ ZHUH LQ SULV RQ ZLWK WKH DFWRUV 7HQ PLQXWHV EHIRUH WKH VKRZ EHJDQ HDFK QLJKW WKH ZRPHQ ZHUH PDUFKHG LQWR WKH LQWLPDWH VSDFH³RVWHQVLEO\ DIWHU KDYLQJ ZRUNHG DOO GD\ 7KH\ LQWHUDFWHG TXLHWO\ IRU D ZKLOH³WKHLU EXQNV PHUH LQFKHV IURP WKH IURQW URZ³WKHQ SUHSDUHG WKHPVHOYHV IRU VOHHS ZKHQ WKH IHPDOH JXDUG FDPH EDFN LQ VKH SHUIRUPHG WKH FXUWDLQ VSHHFK LQ FKDUDFWHU :KLOH KHU VHYHUH GHPHDQRU VHUYHG DV D SDUWLFXODUO\ HIIHFWLYH ZD\ WR ´ZDUQµ WKH DXGLHQFH WR SXW DZD\ WKHLU FHOO SKRQHV LW DOVR LQYLWHG WKHP WR HPEUDFH WKH WKHDWULFDOLW\ DQG YLV FHUDOLW\ RI WKH ZRUOG RI WKH SOD\ ZKLFK ZRXOG LQFOXGH WKHP DV ZLW QHVV SDUWLFLSDQWV WKURXJKRXW 7KH DFWRUV RIWHQ ORRNHG GLUHFWO\ DW DX GLHQFH PHPEHUV LQ VSHFLÀF PRPHQWV RI VWRU\WHOOLQJ SDUWLFXODUO\ LQ GHVFULELQJ WKHLU GLVDSSHDUDQFHV :KHQ WKH SULVRQHU LQIRUPDQW PHW ZLWK KHU ORYHU WKH &DSWDLQ WKH DXGLHQFH EHFDPH YR\HXUV³EXW DOVR NQRZOHGJHDEOH DV WKH\ OHDUQHG WKH SDLU·V VHFUHWV 1HDU WKH HQG RI WKH SOD\ ZKHQ 7KH +RXVH RI %HUQDUGD $OED ZDV ÀQDOO\ SHUIRUPHG WKH DXGLHQFH EHFDPH WKH RWKHU FHOOEORFN PHPEHUV DV WKH ZRPHQ VHUYHG WKHP FRRNLHV SUHSDUHG IRU WKH RFFDVLRQ 8OWLPDWHO\ WKH LQWL PDWH WKUXVW VHWWLQJ PHDQW WKDW DXGLHQFH PHPEHUV FRXOG H[SHULHQFH WKH FRPSDxHUDV· VWUXJJOHV ZKLOH UHPDLQLQJ FRJQL]DQW RI DXGLHQFH PHPEHUV DFURVV IURP WKHP RU WR KRXVH OHIW RU ULJKW ,Q UHWURVSHFW LW SDUDOOHOHG RXU PRPHQW LQ WKH FHQWUDO URRP RI WKH MDLO ZKHQ ZH KDG EHHQ VXUURXQGHG E\ LQPDWHV SHHULQJ DW XV WKURXJK WKLFN JODVV :KHWKHU DXGLHQFH PHPEHUV IHOW OLNH LQPDWHV LQ WKH SULVRQ RI &RP SDxHUDV LV RI FRXUVH GLIÀFXOW WR GHWHUPLQH 6WLOO LW ZDV WKURXJK ´WKLFN GUDPDWXUJ\µ WKDW WKLV OD\HU RI H[SHULHQFH EHFDPH D VWUDWHJ\ IRU HQJDJHPHQW LQ WKH SHUIRUPDQFHV
3KDVH 7ZR 'DQFH &DPS EHJDQ DIWHU %RRW &DPS ZDV RYHU DQG ZH KDG EORFNHG WKH HQWLUH SOD\ ,Q FROODERUDWLRQ ZLWK .U\VWDO .HQQHO VRXQG GHVLJQHU DQG D WKHDWUH SURIHVVRU DW &68 , KDG VHOHFWHG VRQJV IRU WKH WUDQVLWLRQV EHWZHHQ VFHQHV PDQ\ RI ZKLFK ZRXOG EHFRPH EULHI LQWHUOXGHV RI GDQFH DV ZHOO $VWRU 3LD]]ROOD·V HPRWLRQDOO\ FKDUJHG ZRUNV EHFDPH WKH EDVLV RI .HQQHO·V GHVLJQ LQ DGGLWLRQ WR IRON VRQJV VXJJHVWHG LQ WKH VFULSW VXFK DV ´/D &XPSDUVLWDµ DQG ´<LUD <LUD µ 2XU FKRUHRJUDSKHU %UHQGD 0D\ ,WR DOVR D SURIHVVRU LQ WKH WKHDWUH GHSDUWPHQW EHJDQ ZLWK VLPSOH IRON GDQFHV DQG PRYHG UDWKHU TXLFNO\ WR D PRGHUDWHO\ LQWULFDWH WDQJR JLYLQJ WKH FDVW PHP EHUV DQ RSSRUWXQLW\ WR LQWHJUDWH WKH GDQFH LQWR WKHLU FKDUDFWHUV· SK\V LFDO OLYHV :KHQ WKH FDVW KDG OHDUQHG VHYHUDO EDVLF GDQFHV , VWDJHG WKH WUDQVLWLRQV DV PXFK DV SRVVLEOH DOORZLQJ WKH UK\WKPLF PRYH PHQW WR EHJLQ QDWXUDOO\ ZLWK D VRQJ VXQJ E\ WKH ZRPHQ RU D JHV WXUH PDGH WR D FRPSDxHUD ZKR QHHGHG VXSSRUW ,Q DQRWKHU LQVWDQFH WKH VRQJ DQG GDQFH VHUYHG DV D FRSLQJ PHFKDQLVP IRU WKH ZRPHQ ZKR ZHUH OHIW LQ WKH FHOO ZKHQ WKHLU FRPSDxHUD ZDV WDNHQ DZD\ WR VROLWDU\ FRQÀQHPHQW 7KH GDQFH EHFDPH DQRWKHU OD\HU RI WKLFN GUD PDWXUJ\ SURYLGLQJ FRQWH[W WKURXJK LWV FXOWXUDO VLJQLÀFDQFH IRU WKH 8UXJXD\DQ FKDUDFWHUV DQG LQ DOORZLQJ WKH PRYHPHQW WR FRPPXQL FDWH UHODWLRQVKLS DQG HPRWLRQ LQ D ZD\ WKDW ZRUGV FDQQRW
)LJXUH /LGLDҋV WU\VW ZLWK WKH &DSWDLQ LV VHHQ LQ VKDGRZ WKURXJK SULVRQ EHG VKHHWV 5HYLHZ
0XFK ODWHU LQ WKH SOD\·V DFWLRQ D VH[XDO UHODWLRQVKLS LV UHYHDOHG EHWZHHQ WKH &DSWDLQ DQG /LGLD DQ LQPDWH ZKR LV DOVR DQ LQIRUPDQW ,Q WKH VFULSW &RXGOH .LQJ FDOOV IRU WKH &DSWDLQ WR EHJLQ WR XQGUHVV /LGLD UHYHDOLQJ KHU EUHDVWV DV WKH\ HQJDJH LQ ´SLOORZ WDON µ 'HVSLWH WKH VWDJH GLUHFWLRQV LQGLFDWLQJ QXGLW\ IURP WKH ÀUVW WLPH , UHDG WKH SOD\ WKLV VFHQH FRQMXUHG XS LPDJHV RI SULVRQ EHG VKHHWV XWLOL]HG WR REVFXUH WKH QXGLW\ DQG VLOKRXHWWHG ORYH PDNLQJ XQWLO /LGLD UHYHDOV D VHFUHW WR WKH &DS WDLQ³VKH LV FDUU\LQJ KLV FKLOG 7R DFKLHYH WKLV HIIHFW .HQQHO DQG , FKRVH D UDWKHU VWULFWO\ V\QFRSDWHG VRQJ ZLWK D WRQH RI LQWULJXH $IWHU GHVFULELQJ WKH FRQFHSW RI WKH VFHQH WR ,WR³WKDW /LGLD DQG WKH &DSWDLQ ZRXOG EH ERWK ´ZDWFKHGµ DQG ´KLGGHQµ E\ WKH RWKHU LQPDWHV FDU U\LQJ EHG VKHHWV DQG JXDUGV FDUU\LQJ ÁDVK OLJKWV³VKH FKRUHRJUDSKHG PRYHPHQW WR PDWFK WKH PXVLF DQG WKH QHHGV RI WKH DFWLRQ )LJXUH 7KH UHVXOWLQJ VFHQH ZDV VLPXOWDQHRXVO\ WKHDWULFDO VHQVXDO DQG FKLOOLQJ DOVR SXUSRVHIXOO\ UHPLQLVFHQW RI RXU YLVLW WR WKH MDLO·V FHQWUDO URRP GXULQJ %RRW &DPS ,Q ERWK GDQFHV³RQH H[SRVL WRU\ DQG WKH RWKHU FOLPDFWLF³WKH PRYHPHQW UHPDLQHG FRQWH[WXDOL]HG ZLWKLQ WKH SULVRQ UHPLQGLQJ YLHZHUV WKDW WKHUH LV QR HVFDSH
:KLOH 'DQFH &DPS ZDV TXLWH GLIIHUHQW IURP %RRW &DPS LW VHUYHG DQ HTXDOO\ LPSRUWDQW GUDPDWXUJLFDO IXQFWLRQ &RPSDxHUDV LQYROYHV D NLQG RI EUXWDO UHDOLVP ZKLFK &RXGOH .LQJ EDODQFHV ZLWK WKHDW ULFDOLW\³WKH SOD\ ZLWKLQ WKH SOD\ WKH TXLFNO\ GHYHORSLQJ DFWLRQ DQG WKH VXJJHVWLRQ RI GDQFH 7KH LQWHUOXGHV LQYROYLQJ GDQFH VHUYHG WR SRLQW XS WKH WKHDWULFDOLW\ RI WKH SLHFH EHFRPLQJ WKHLU RZQ ´VWR ULHV µ KRZHYHU EULHI LQ WXUQ WKH GDQFH DOORZHG PRPHQWV RI KDUVK UHDOLVP WR XQIROG PRUH VKDUSO\ JLYHQ WKH FRQWUDVW 3HUKDSV PRVW UHIUHVKLQJO\ WKH GDQFH VHUYHG WKH DFWRUV E\ RIIHULQJ WKHP PRUH ´VWRULHVµ RQ ZKLFK WR EXLOG WKH FKDUDFWHUV· UHODWLRQVKLSV ,Q &RP SDxHUDV IRU PH DW OHDVW D GUDPDWXUJ\ RI GDQFH ZDV ERUQ :KLOH , KDYH DOZD\V DSSUHFLDWHG GDQFH DQG RIWHQ XVH LW ZLWKLQ SURGXF WLRQV EHFDXVH RI LWV EHDXW\ DQG DELOLW\ WR FRPPXQLFDWH HPRWLRQ WKLV OD\HU RI GHVFULSWLRQ DOVR DOORZHG WKH SOD\·V WLJKW VWUXFWXUH WR EUHDWKH PRUH IXOO\
:KLFK EULQJV PH EDFN WR %HDUGHQ·V QRWLRQ RI WKH DUWLVW DV ZKDOH 7KH H[SHULHQFH RI ZRUNLQJ RQ &RPSDxHUDV ZDV OLNH DQG XQOLNH DQ\ RWKHU GLUHFWRULDO SURFHVV , KDYH JXLGHG /LNH RWKHU SURFHVVHV LW LQYROYHG PDQ\ VWDJHV RI UHVHDUFK DQDO\VLV DQG LQWHUSUHWDWLRQ IURP D YDULHW\ RI SHUVSHFWLYHV FXOPLQDWLQJ LQ D ULFK SUDFWLFH ,Q FROODERUDWLRQ ZLWK WKH VWXGHQW GUDPDWXUJ D YDULHW\ RI SHUVSHFWLYHV ZHUH RIIHUHG RQ WKH GLUW\ ZDUV DQG WKH VRFLDO DQG KLVWRULFDO IDFWV FRQQHFWHG WR WKH SOD\·V WLPH SHULRG )RU PRVW RI WKH FDVW DQG SUR GXFWLRQ WHDP WKLV ZDV WKH Ã&#x20AC;UVW WLPH GHOYLQJ LQWR WKH WRSLF³DQG LW EHFDPH D VLJQLÃ&#x20AC;FDQW IRFXV IRU PDQ\ PRQWKV WR IROORZ DV ZH FRQWLQXHG WR SRVW LQ RXU RQOLQH JURXS DERXW FXUUHQW GHDOLQJV LQ 8UXJXD\ DQG 6RXWK $PHULFD ,Q WKDW VHQVH WKH ZRUN LPSDFWHG XV LQ ZD\V WKDW DUH GLIÃ&#x20AC;FXOW WR PHDVXUH³RXU YLHZ RI WKH ZRUOG EH FDPH D ELW ´WKLFNHUµ DV D UHVXOW
8QOLNH PRVW RWKHU SURFHVVHV LQ ZKLFK , KDYH HQJDJHG WKH GUDPD WXUJLFDO ZRUN IRU &RPSDxHUDV ZDV DV NLQHVWKHWLF DV LW ZDV LQWHOOHF WXDO :KLOH WKH H[SHULHQFHV GHVFULEHG DERYH RQO\ UHSUHVHQW D VPDOO SHUFHQWDJH RI RXU HQWLUH SURFHVV WKH\ GR HQFRPSDVV WKH SK\VLFDO QDWXUH RI WKH SLHFH LWV VFRSH DQG FRQQHFWLRQV IRXQG ZLWKLQ WKH SOD\ WKURXJKRXW WKH SURFHVV :LWKRXW &RXGOH .LQJ·V EULHI VWDJH GLUHFWLRQ RQ GDQFH , FDQQRW EH FHUWDLQ WKDW , ZRXOG KDYH KDG WKH LQVLJKW RU WKH FRXUDJH WR Ã&#x20AC;QG LQ LW WKH FRQQHFWLYH WLVVXH LW SURYLGHG WKH VWRU\ 0\ UHVHDUFK DQG H[SHULHQFHV ZLWK WKH SOD\ OHG PH WKHUH 6LPLODUO\ WKH ZRUN ZH GLG XVLQJ %RDO·V 7KHDWUH RI WKH 2SSUHVVHG H[HUFLVHV RXU YLVLW WR WKH MDLO RXU GLVFXVVLRQ ZLWK WKH VRQ RI D ZRPDQ ZKR ZDV ´GLVDSSHDUHGµ³DOO RI LW FKDOOHQJHG RXU SK\VLFDO ERXQGDULHV LQ ZD\V WKDW DUH QRW W\SLFDO WR HYHU\ SURFHVV :H QRW RQO\ FDXJKW D JOLPSVH RI WKH YLVFHUDO OD\HUV ZLWKLQ WKH SOD\ EXW LW PDGH XV PRUH DZDUH RI RXU RZQ :LWK &RPSDxHUDV , EHJDQ WR XQGHUVWDQG SK\VLFDOO\ ZKDW LW PHDQV WR EH D ZKDOH 7R WDNH LQ DOO WKDW , DP DEOH HPEUDFLQJ HYHQ ELWV DQG SLHFHV WKDW PD\ QRW ORRN OLNH QRXULVKPHQW , KDYH DOZD\V PDUYHOHG DW WKH DELOLW\ RI ZKDOHV WR VXEVLVW DW WLPHV RQ RUJDQLVPV DV PLQXVFXOH DV SODQNWRQ DQG NULOO EXW , DOVR QRZ UHDOL]H WKDW LW LV RIWHQ WKH WLQLHVW PRUVHO WKDW PDNHV WKH GLIIHUHQFH &DOO LW ´WKLFN GUD 7KH FDVW JUHZ YHU\ VLOHQW DV WKH \RXQJ PDQ ZKRVH ZLIH DQG WZR PDWXUJ\ µ ´DFWLYH GUDPDWXUJ\ µ RU MXVW SODLQ ´GUDPDWXUJ\ µ WKH FDOO \RXQJ FKLOGUHQ KDG DFFRPSDQLHG KLP H[SODLQHG KLV PRWKHU·V GLV RI WKH DUWLVW LV WR EH LQ WKH ZRUOG RI WKH RFHDQ WR WDNH LW DOO LQ DQG WKHQ DSSHDUDQFH /LNH PDQ\ VKH KDG EHHQ D VWXGHQW DW WKH WLPH WDNHQ OHW JR³VR WKDW VKH KDV ZKDW VKH QHHGV WR FUHDWH ZKLOH YLVLWLQJ KHU FRXVLQV 6WXGHQWV ZKR DVNHG WRR PDQ\ TXHV WLRQV ZHUH SHUFHLYHG WR EH WURXEOH DQG ´GLVDSSHDUHGµ TXLWH RIWHQ ,Q KLV PRWKHU·V FDVH WKH GLVDSSHDUDQFH VHHPV WR KDYH EHHQ D ZDUQ LQJ VKH ZDV UHOHDVHG D ZHHN RU VR ODWHU %XW KHU GLVDSSHDUDQFH :25.6 &,7(' ZDV HQRXJK WR FRQYLQFH KHU WR OHDYH KHU FRXQWU\ QHYHU WR UHWXUQ 6LPLODU WR RXU %RRW &DPS H[SHULHQFH DW WKH MDLO KHDULQJ DERXW WKLV %HFNHU %HFN\ ´&RPSDxHUDV µ )DFHERRN FRP -XO\ :HE ZRPDQ JDYH WKH HYHQWV RI WKH SOD\ D QHZ PHDQLQJ IRU WKH FDVW DOO RI ZKRP ZHUH FORVH WR KHU DJH ZKHQ VKH ZDV ´GLVDSSHDUHG µ %H %HUJHU 5RVH 0DULH ´-RDQ &KLWWLVWHU $ 6WRU\ RQ %HDXW\ µ 5RVH IRUH OHDYLQJ WKH UHKHDUVDO WKH \RXQJ PDQ WKDQNHG XV HDUQHVWO\ IRU PDULHEHUJHU FRP -DQ :HE 0D\ ´OHWWLQJ SHRSOH NQRZµ WKDW WKHVH KRUURUV KDG UHDOO\ KDSSHQHG 7KH DXWKHQWLFLW\ RI KLV PRWKHU·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´%HDUGHQ DW JDJHPHQW ZLWK WKH ZRUN WKDW ZHQW EH\RQG WKH VKLPPHULQJ VXUIDFH D *ODQFH µ 7KH $UW RI 5RPDUH %HDUGHQ 1DWLRQDO *DOOHU\ RI $UW 7KH\ KDG³DQG KDYH³DQ HQWLUH RFHDQ WR H[SORUH :DVKLQJWRQ ' & :HE 2FW 3KDVH 7KUHH 5HDOLW\ &DPS RFFXUUHG GXULQJ WKH ODVW WKLUG RI RXU UHKHDUVDO SURFHVV 7KH SOD\ ZDV IXOO\ VWDJHG WKH GDQFHV ZHUH LQ SODFH DQG DOWKRXJK QRZKHUH QHDU ´SHUIRUPDQFH UHDG\ µ ZH LQYLWHG &68 6SDQLVK SURIHVVRU 'U $O\FH &RRN WR YLVLW D UHKHDUVDO ZLWK KHU VWXGHQW ZKRVH RZQ PRWKHU KDG EHHQ ´GLVDSSHDUHGµ LQ $UJHQ WLQD 'U &RRN VKDUHG KHU UHVHDUFK RQ OLWHUDWXUH WKDW HPHUJHG DIWHU WKH GLUW\ ZDUV H[SODLQLQJ WKDW PDQ\ RI WKH ´GLVDSSHDUHGµ ZHUH OLW HUDU\ Ã&#x20AC;JXUHV ZKR KDG QRW GLUHFWO\ FKDOOHQJHG WKH JRYHUQPHQW EXW ZKHQ VRPHRQH ZDV WDNHQ WKH FRPPXQLW\ RIWHQ IHOW WKDW ´WKH\ PXVW KDYH GRQH VRPHWKLQJµ WR GHVHUYH LW 'U &RRN DOVR JDYH XV IXUWKHU LQVLJKW LQWR DVSHFWV RI WKH SOD\ WKDW HYHQ RXU UHVHDUFK KDGQ·W TXLWH XQFRYHUHG 2QH VXFK JHP ZDV KHU UHIHUHQFH WR )RUG )DOFRQV DV D V\PERO RI WKH FDSWRUV EULQJLQJ LPSRUWDQW VXEWH[W WR D OLQH RI GLDORJXH 0DULD KDV QHDU WKH EHJLQQLQJ RI WKH SOD\ DV VKH H[SODLQV KHU RZQ GLVDSSHDUDQFH ´7ZR PHQ GDUN VXLWV VNLQQ\ WLHV VOLFNHG EDFN KDLU $ ZKLWH )DOFRQ DW WKH FXUE µ &RXGOH .LQJ 7KH FDVW VRDNHG XS 'U &RRN·V WKRXJKWV DERXW WKH GLUW\ ZDUV DVNLQJ PDQ\ TXHVWLRQV XQWLO VKH WXUQHG WKH GLVFXVVLRQ RYHU WR KHU VWXGHQW
5HYLHZ
&RXGOH .LQJ .DWK\ &RPSDxHUDV 8QSXEOLVKHG PDQXVFULSW *DVFRLJQH %DPEHU ´+LVWRU\ RI 8UXJXD\ µ +LVWRU\ZRUOG )URP :HE 0D\ *HHUW] &OLIIRUG 7KH ,QWHUSUHWDWLRQ RI &XOWXUHV %DVLF %RRNV 3ULQW /HVVD )UDQFHVFD ´7KH 0DQ\ )DFHV RI ,PSXQLW\ $ %ULHI +LVWR U\ RI 8UXJXD\·V ([SLU\ /DZ µ ,QWHUQDWLRQDO $IIDLUV DW /6( %ORJ /RQGRQ 6FKRRO RI (FRQRPLFV DQG 3ROLWLFDO 6FLHQFH 6HSW :HE 0D\
5HYLHZ