“New Career Challenge Came After My 59th Birthday Celebration”

Rostislav Dvořák

Did you know that the tradition of production co-operatives in the Czech lands dates back to the middle of 19^th century? That the longest functioning Moravian Central Office Brno has had an uninterrupted production since 1909? That 2012 was proclaimed the International Year of Cooperatives to underline the unique role of cooperatives for the economic development of a state, but also villages? And that the study undertaken by the EU Parliament Council for science, development and industry confirmed that cooperatives prove to be the most stable companies having the lowest fluctuation in both production and employment as opposed to other conventional types of enterprises?

The Union of Czech Production Co-operatives has a member base which consists of over 200 production co-operatives from across the entire Czech Republic. Production co-operatives are Czech firms and important exporters not only to the EU countries, but also to the USA, Canada, Brazil, Kuwait and other countries.

Meet Mr. Rostislav Dvořák, President of the Union of Czech Production Co-operatives. Prior to becoming President in 2011 and being re-elected in 2015, he was the President of the successful production co-operative “Vývoj Třešť”, a company with 300 employees. Our interview focused on the issue of production co-operatives that proved to be much more complex, thus demonstrating the complex and unique role of this type of enterprise, unfortunately not sufficiently acknowledged by either public or the media.

Mr. President, how would you describe your career journey and your current role?

I understand career as a period of growth to follow visions and aims. However, when you turn 60, then comes a period for us to use the acquired experience and attempt to apply it for the benefit of people or issues. Such was my purpose when I decided to sell the majority of shares in various companies and accepted the challenge to come to Prague to support Czech production co-operatives. It was not an easy decision, and even after two years in the office, I still had doubts. My father used to say: “Son, hold on to the chimney”, meaning do not get entangled in political issues or debates. Despite the fact that my function is not political, one third consists of important negotiations to achieve better entrepreneurial conditions for our members in civil sector as well as political representation on various levels – from the Office of the Government to regions and other bodies such as the Chamber of Commerce, Union of the Confederation of Industry of the Czech Republic and others – so there is politics involved to a certain extent. The remaining two thirds of activities are linked to managing our Union. We provide services to our co-operatives members, we help them with economic issues, cost and profit development and influence on the overall economic results. All these tasks are natural continuation of my involvement in the Vývoj Třešť cooperative.

Your interest in economics was not straightforward, you originally graduated from law school. But it was thanks to your economic strategy that the Vývoj Třešť proved to be such a successful co-operative.      

You are right, I have never worked either as a lawyer or in advocacy. However, I believe that the connection of both economic and law education was very useful and quite essential for my work I myself used to handle all the judicial matters that were truly essential to the functioning and even existential. This was particularly useful in the early 1990s when claims for property restitutions started, which had direct impact on the functioning of existence of many enterprises. Our company, in contrast with many others, had never lost any restitution claim brought to the court. When I joined the production co-operative in Třešť, this enterprise with 350 employees was of an average size; nowadays, it belongs to the largest enterprises in the region. We need to go back to the history and remind ourselves that at the beginning of 1990s the whole Czech market unprecedentedly opened to the whole world and Czech companies were not prepared to face such reality. 300,000 employee positions were lost in the textile and clothing industry alone. In total, one half of the production co-operatives disappeared. In Třešť, we realised that we cannot continue to supply the products which will be valued only for “hired labour”. At first, we concentrated on specialised products such as blazers for men, and as you can see, I am still proudly wearing the garments. Then we followed with special unique products, such as protection clothing for firemen, the police and even the army. We have managed to get NATO licences and certifications that until 2005 had been held by other two companies in the whole Europe. Thanks to such approach, the production co-operative has stable sales and today it belongs to the top enterprises in its field not only in the Czech Republic but also on the European scale. For eight years, I did not have vacations and I also used to work on Saturdays.

You are known for open and frequent criticism of the conditions for small and medium enterprises in the Czech Republic.

As I have already mentioned, in 1990s, there was a sharp decline of consumption of Czech goods. As much as this was substantiated with regards to electronics, design and consumer goods, unfortunately there were cases where our products were comparable to the ones coming from the West. I am quite bothered by the fact that our 100% food sovereignty was lowered to 50% and that we import too much low quality food products. Some companies went bankrupt, some companies decided to specialise on “hired labour” production for foreign companies. What we need to mention is that Czech companies did not receive any kind of support or protection, which is in sharp contrast to the approach with regards to foreign companies. The current industry structure is therefore a legacy of the beginning of transformation and as such it is very fragile and vulnerable in the context of the global open world. Not only are we dependent on direct foreign investments but we are also dependent on the one and only industry, which is the automotive one. Both dependencies bring severe risks when connected to economic crises. It would take a whole book to discuss this issue.

So how do you see the situation 27 years after the Velvet Revolution from the perspective of production co-operatives?

Production co-operatives are part of economy, like any other production company.  So when the economy is growing, the results of co-operatives follow the trend.  However, only few people realise the role and the tradition cooperatives have and play in the state economy. In sharp contrast to Great Britain, Austria or Germany,  cooperatives in the Czech Republic are perceived as a result of the so-called “collective agricultural socialisation” which gave existence to agricultural co-operatives. People do not know about production co-operatives that represent one type of enterprises, next to the limited liability companies and joint stock companies. Production co-operatives have historically belonged to the most stable organisations.  This is why the EU puts pressure on national governments so they pay attention and support production co-operatives and small and medium enterprises. In times of crises, they handle the challenges not only with regards to employment but also profits. Their production includes engineering, construction, automotive products, production of robots for processing industry, electro-installation materials, all types of furniture, cosmetics and drugstore goods, fashionable clothing for women, men and children, but also kitchen utensils, gardening tools, equipment for hunters, fishermen, the police and army. They also produce jewelry, Christmas decorations, toys – simply an inexhaustible range of products. The turnover of the largest cooperatives goes to several billions, and staff numbers range from hundreds to thousands employees. Our government and politicians should support these enterprises unless we want to be dependent on the decision making of foreign corporations regarding what to produce or even whether the production will remain in the Czech Republic at all. Therefore, we need to support the whole segment of SMEs with links to research and development, new technologies and marketing. We should help these companies find and develop production of own proprietary products, so they are not dependent on “hired labour” production.

Your final words for Czech and Slovak Leaders readers?

Your readers come from various spheres ranging from politicians and civil servants, to top personalities in management, cultural sphere, science, so it is difficult to make one appeal to fit all. I am not naïve to believe that people in general would make the overall society interest as a priority, since personal interests tend to prevail, even if people do not like to talk about it openly. That being the case, let us try to make sure that the society’s overall interest comes second and that we all will support it in a meaningful way. Such appeal goes to politicians, civil service administration, spheres ranging from culture to health, and all the way to us, representatives of employers who are the ones who create the value that enables to cover all social activities.

By Linda Štucbartová

“The Czech Republic is an incredible part of the world.”

Šárka Strachová

In 2012, Šárka’s life was under a direct threat due to a benign brain tumour which caused a complete metabolism failure. Despite this, she managed to return to professional skiing and again win the bronze medal in slalom in Beaver Creek in 2015. In September 2016, Šárka Strachová received the Silver Medal of the Czech Senate for her accomplishments.

When you meet Šárka in person, you see a person whose image is in sharp contrast with many “spoiled” sport stars. She is very modest and humble, yet manages to project inner strength, determination and hidden energy to excel in whatever she desires. On behalf of the Czech and Slovak Leaders magazine, we wish her a successful 2016 season!

“Man shall not live on bread alone”

Mons. prof. PhDr. Tomáš Halík, Th.D.

It was Václav Havel in 1998 who mentioned me as a possible successor to the press. We were close friends and we had been cooperating for many years. Since then I have been frequently asked about my willingness to become a presidential candidate. I tend to answer in the following consistent manner: I have very deeply assessed the pros and cons and still, the arguments against are stronger. I believe that for the Czech society I might be more useful in my current role. The role of a “public intellectual”, i.e. a writer, a priest and a university lecturer, gives me freedom of expression based on my moral sense and wisdom and I am completely free, having no constraints imposed by political institutions. During this very year, I have realised that I refuse to share hysterical and panic reactions against both refugees and Muslims (albeit scarce in our country), and I am against the mainstream opinion in the society. In order to win the votes in the atmosphere that is currently prevailing in the Czech society – and that is most likely not going to change within next two years – I would have to use the same proclamations as politically successful populists – something that counters my conscience and my experience that I have gathered travelling and studying all around the world. The ability to stay true to my conscience is the most precious thing above anything, including a presidential seat at the Prague Castle.

Since we are discussing speculations about you becoming a candidate, you mentioned that you would need to get a “dispens from Vatican” or “to be temporarily released from the priest service”. Can you be more specific with regards to priests and their involvement in active politics? You are also a part of a society, so you should have both rights – to vote but also to be elected.

According to the Czech constitution, a priest has the same rights as any other citizen.  However, the Canon law does not allow a priest to hold posts linked to political power while exercising priest service at the same time. In case he/she wants to become a candidate, a priest must ask the Bishop or the Pope for exception – the so-called dispens from the Codes of Cannon law or to give up priest service or priest office for a certain period (or definitively). Even if the priest gives up (or is released from) the priest office, the sacrament of priestly ordination stays. According to the Canon law such sacrament is “signum indelibilis (indelible sign)”, but he cannot perform tasks linked to ordination and he can be released from priest obligations, including celibacy.

For me, personally, the priest mission is a source of profound happiness. In my Academic Parish of Prague, that I have established, I have baptized more than 1000 adults, most of them being university students. This parish has become an important cultural centre and also a centre of an ecumenical and intercultural dialogue; we have had the opportunity to host many important Christian, Jewish, Muslim and Buddhist leaders, including Tibetan Dalai Lama. I feel a deep responsibility for such place, being a unique formation of cultural, spiritual and moral backgrounds of more than two generations of young people. That serves as a reason that I would consider the possibility to become a candidate for the president only in an extreme case – only if I had not seen someone else to defend similar values with a bigger or equal chance to be elected.

Now, let us discuss the second significant award – The Templeton Prize – you have received in 2014. The Templeton Prize is an equivalent to Nobel Prize for Religion and you have received it not only for your attitude during the totalitarian regime, but also for “an attempt to bridge a gap between different religions, for leading their protagonists for more conciliatory relations and for mutual understanding”. Are we truly on a way towards understanding or rather towards a big inter-religious conflict as could be judged given the recent summer incidents that were marked by the murder of a priest in France?

Secular societies have forgotten that religious symbols and religious rhetoric serves as an accumulator of an enormous energy, which can be used for both good and bad causes.  Just due to the very fact that religion, and now particularly Islam, is abused by criminals, it is essential to nurture an interreligious dialogue as well as a dialogue between religion and secular culture. Criminals from the so-called Islamic state, which has been strongly condemned by all important religious authorities of Islam, want to spark a conflict between the West and the Islamic world. They are assisted by those who cannot distinguish between Islam and jihad criminals. The majority of the current “jihadists” are not religious people, they usually know only few cut out sentences from the Koran. The point is not that religious Muslims are becoming radical, but rather that political radicals use religious rhetoric. This can change if the substantiated anger of the West against terrorists transforms into anger against Islam as such. The Catholic Church can play a significant role, since it can understand both sides – Islam on one hand side, as they have many values in common, and secular humanism on the other side, since this was born on the roots of Christianity. Therefore, the Catholic Church can help mutual understanding and help prevent disastrous conflict, and for that reason, I am very much engaged in this dialogue of cultures nowadays.

Being interviewed for the Czech and Slovak Leaders Magazine, how do you define a leader yourself? How do you define leadership skills? And do you see enough leaders ready for challenging times in the Czech Republic, Europe and today’s world?

With regards to the Czech political scene, I do not see many leaders who could be true leaders, i.e. credible moral authorities, not only pragmatic power managers. I know many people who could grow to become leaders among young people, especially among those who studied and gained experience in the West. The challenge is that many capable individuals studying abroad at top universities do not wish to return home. They do not like the local political climate and particularly scandalous talks and views of Miloš Zeman and those who surround him who try to sway the helm from the West to the East.

As far as European scene is concerned, I value Angela Merkel and German president Joachim Gauck. By the way, Mr. Gauck is a former Christian pastor and Mrs. Merkel is a daughter of a pastor, similarly to Theresa May, Prime Minister of United Kingdom.

A leader, as opposed to a mere manager, is capable of forming a long-term vision and to get other people to support them, particularly by setting a personal example.  Unfortunately, in the current atmosphere, there are many successful political clowns and even hard psychopaths, such as Donald Trump.

Tomáš Halík and Václav Havel

Expanding on my previous question and you personally, how do you find the saying “no one is a Prophet in his own land”? Do you feel sad about the difference how accepted you are abroad and the kind of derogatory debate you face in the Czech Republic? Why Czechs do not value their elites sufficiently?

Yes, I feel sorry that instead of a substantial debate I have to face personal attacks and slander, prejudice, stupidity and hatred, especially in the anonymous environment of social networks. I feel sorrow when I imagine in what kind of a moral and spiritual world these people live so they are able to write such things. My father, a literary historian and a publisher of Karel Čapek’s files, once showed me a basket full of anonymous letters that Karel Čapek received prior to the World War II. And it was the very raid of the rabble that chased him to death. That style is quite similar to the style I receive from Czech anonymous writers. The hatred against intellectuals and critically thinking people is very much encouraged by president Zeman who knows that majority of educated people would not vote for him, so he constantly insults them, he calls them “coffee-house idlers” etc., uses feelings of inferiority and the worst there is in the society and human sub-consciousness. I did not agree with Václav Klaus and I do not agree with him almost on any issue, but at least, I feel that he truly believed in whatever he said.  With Mr. Zeman I feel that he says whatever will bring him votes and power.

I cannot judge to what extent such dirt is present in other countries, but based on the success of nationalists in Poland, Slovakia and Hungary, and the extent of support to Donald Trump in the USA, I believe that the Czech Republic is no exception. The growth of populism and demagogy in Europe is not less disconcerting to me as the growing number of refugees, jihad terrorism and dangerous imperial ambitions of the Putin’s regime. And just to add – I truly do not underestimate particularly Putin’s aim to control former Soviet satellites.

What are your final words for Czech and Slovak Leaders readers?

I am in touch with numerous entrepreneurs in our country who understand that economic and political democracy depends on moral climate in society and such cultural biosphere depends on the courage of leading personalities to “sail against the tide” and to represent values through personal examples. If these are lacking, human society changes into an uninhabitable jungle. Relying on the “invisible market hand” causes the invisible corruption hand. We need reliable people who understand that “man shall not live on bread alone” and who are willing everyday to fight for the benefit of the whole society, bear responsibilities for the culture of interpersonal relationships without which no free society is conceivable.

By: Linda Štucbartová

“Authentic leadership has changed my attitude to life”

Czech and Slovak Leaders Following the Slovak EU Presidency

Silvia Gavorníková, Head of International Relations Department, Slovak Export Credit Agency EXIMBANKA SR

It is a pleasure and privilege to introduce you Mrs. Silvia Gavorníková, who is not only the Head of International Relations Department at Slovak Export Credit Agency EXIMBANKA SR (Export-Import Bank of the Slovak Republic) but also the Chairwoman of the OECD Working Party on Export Credits and Credit Guarantees. In addition, Mrs. Gavorníková finds time for self-development activities dedicated to authentic leadership and last but not least, her passion in horse-riding resulted in organising top-level equestrian events in Slovakia.

Silvia, can you share with our readers more about important milestones on your career journey that took you from Bratislava all the way to Paris?

I have been working in EXIMBANKA SR for 18 years. During this time I have managed to develop knowledge and understanding of the export credit environment and international regulations which are very complex and strict. When Slovakia joined OECD and EU we had to fully comply with these rules, what was sometimes a very challenging process.

On the other hand, this environment is very dynamic as some regulations are being continuously updated and new ones are being adopted. Just like any other international environment, export credits are also about advocating national interests. So I quickly understood that if I wanted to support our national interests, as a national delegate, I needed to speak out, yet our counterparts had to learn to listen to our opinions, i.e. opinions of small countries. To understand national interests correctly, it is very important to communicate effectively, either with my colleagues who are in touch with Slovak businesses or with exporters directly.

The journey took a while as I have been participating at the meeting of the Export Credit Group in Brussels, where only EU Member States are involved, since 2008. During this time I have gained experiences in international negotiating, learned how to support national positions, as mentioned above, national interests, and also our preferences. All international negotiations are based on personal contacts and if you are a respected negotiator, then you can seek support for becoming the Chair. I am very grateful to gain the possibility to run for the Chairman of the Group. I believe that I can be trusted by my colleagues to fulfil the task of the Chairman as an honest broker working to the benefit of the entire Group. Therefore, the EU Council Working Group endorsed me as an EU candidate for the position of the Chairman in OECD as well as a member of the OECD Export Credit Bureau in autumn 2014. I was elected into this position by all Members of the WP ECG during the OECD autumn plenary meeting in November 2014 and re-elected for 2016 in November 2015. On 1st of July 2016, the Slovak Republic took over the first ever Presidency of the Council of the European Union (SK PRES), so I have become also the Chairman of the EU Council Working Group for Export Credits for the 6 months of the Slovak Presidency. The main challenge for Slovakia as part of these important responsibilities and opportunities is to find the way among the Member States to compromise to be able achieve a consensus on difficult issues on the EU agenda and to best represent our country. In this regard we will be hosting a Presidency meeting for all ECG members (EU Member States) in Bratislava in October, so I will be very proud to also welcome my colleagues at the Informal Presidency Meeting in Bratislava, the town where I was born and raised.

Paris, OECD and the world of finances – the three elements evoke the verse “it is a man’s world”. Did you perceive it the same way? Did it feel like you were breaking a glass ceiling or was it more difficult to overcome some stereotypes due to the fact that you were coming from “the East”?

I would say that our Working Group is very well gender balanced thanks to the deep respect for professional qualities of each other and great work of my female colleagues. I definitely was not the first woman to chair the OECD meetings (which started in 1978) or EU; however, it is true that in our OECD working group I am the first representative coming from the former “East block” who was elected to the Export Credit Bureau. I have to admit it would not be feasible without the support of my colleagues from the European Union and other OECD members, and of course my Slovak supporters.

Once I have earned the trust of the group, I am trying to do my job properly and in the most professional way. My main task as the Chair is to move the negotiation process forward. To achieve this I have to listen to the delegations carefully and understand the background very well. One of the most important features of the Chair in such an international environment is being impartial, loyal to the Group and I believe that in this sense my origin is an advantage.

Our interview is for the Leaders magazine. How do you define yourself as a leader and your leadership style?

I heard once, that “leadership” cannot be taught like management, but can be learned and enhanced. I believe that authentic leadership has opened my eyes in the area of self-development and improved the quality of my life not only in my professional career. I became familiar with the Talent Dynamics Profile Test which I find quite useful, because it is based on natural talent and not on skills. My personal talent dynamic profile is “Supporter” and based on this result I realised why I had always needed to work with people and lead them to achieve the best outcome of their work. This has confirmed my role in which I always felt the best – activities relating to people, organising teams, motivating, communicating, people-focused leadership, learning through conversations and teams, communicating through one-to-one discussion. Together with my team we create a great team and our work is very well accepted within our institution as well as in international meetings. My favourite sentence corresponds with my profile: “It wasn’t just me, it was the team”.

You dedicate quite a lot of time to self-development. What are some key findings you can share and pass forward?

I got in touch with the authentic leadership programme through my great coach Eva Štefanková in spring 2015, with the main aim to prepare for the historically first ever Slovak Presidency in the EU Council.

What I value most out of this self-development approach is the attitude towards myself, ability to look at myself and starting to know myself. This goes hand in hand with the ability to understand my strengths and weaknesses and take all the knowledge to achieve the best performance in my work. I consider myself blessed because I like my work very much; if I should describe my job I would say a “dream job”, so to improve myself in self-development is very natural to me as I want to improve all the time.

Do you see enough leaders able to address the current complex issues, be it on the local, regional and European level? What are the biggest challenges they face?

An authentic leader is in my view a person who makes his/her decision naturally as a free human being with the full responsibility and best intention to achieve his/her goal. In my opinion, these days are very challenging because thanks to social media many “leaders” pop up and quickly disappear. I believe that to become a leader is a sustainable process of learning, listening, communicating and expressing oneself. I think one of the biggest challenges for every leader is to understand where their role is and know well available room for manoeuvre, which can be used effectively to achieve their goals.

Horse-riding is your passion but you do not do it merely to relax but also used this opportunity in the past to promote Slovakia abroad. Besides horse-riding, can you comment on your overall approach to work-life balance, how do you find time and where do you find energy?

I’ve always dreamt about riding horses, and since my parents didn’t like this idea I had to wait till I was 14 to find my way to start riding on my own. After a short adventure in racing stables I found a riding stable of show jumpers, with the No.1 Slovak rider at that time and I’ve been riding show jumpers/hunters ever since. I have competed on the national level and my favourite part is riding young horses at the time when you can teach them how to like to be ridden and influence their personality.

No matter how much I like my work, it is absolutely crucial to have balance in my life. My work includes a lot of traveling, which is time consuming and especially long negotiations could be exhausting, so I need to be focused and concentrate at all times. Horses are the generator of my energy, the moment I sit on a horse back all the problems disappear, the head clears up and I am able to rethink and re-evaluate all I have in my mind.

Looking 20 years ahead, what would you like to see?

I am grateful for all opportunities that I have got in my life and I believe that all this would not be possible without a great support of my family, my husband and my parents.

So even in 20 years from now I would like to be surrounded by people I love, can rely on and trust at the same time and I still would like to work in a position which would also be my hobby and passion.

Your final words…

Authentic leadership has changed my attitude to life, opened my eyes in many ways and made me realise how much my reaction can influence the outcomes which then have the major impact on my decisions. When I look back I understand my reactions in the past much better and I believe that for the future many more circumstances will lead to a different outcome, because of my current knowledge.

I would like to wish your readers successful decisions and satisfaction in their life, which brings all the joy and delight.

By Linda Štucbartová

On Sports, Warm-up Routine and Expanding Knowledge

Prof. MUDr. Jiří Chomiak

Prof. Jiří Chomiak, MD, PhD., is the Head of Orthopaedic Paediatric Department at the Bulovka Hospital Prague. He also is the Professor of Orthopaedics on First Medical Faculty of Charles University, a FIFA Medical Committee member and an active FIFA doping control officer. He researched and introduced the FIFA 11+ warm up programme designed to prevent injuries for football players in the Czech Republic. He regularly publishes in the top medical journals. Yet, he still manages outpatient practice once a week, focusing on a hip examination of new born babies, in the Bulovka Hospital. That is where we met 13 years ago. I am one of many lucky Czech mothers, whose child got the special, efficient hip treatment, not requiring a surgery, thanks to the early treatment programme. I have always admired his dedication to medicine and patients. As a person, Prof. Chomiak is not very talkative but whatever he says bears enormous depth and wisdom. It was a pleasure and privilege to discuss with him not only the orthopaedic discipline he has dedicated his professional life to, but also his view on sports in general and last but not least the latest development in Czech football which, after the European Football Championship, interests at least a half of the Czech population.

Practising medicine cannot be compared to a profession, it is a mission. You have chosen the domain of orthopaedics. Was there any particular reason for choosing this specialisation?

My journey to the orthopaedics specialisation was a bit complicated. When I was an assistant at the Anatomy Institute, besides teaching, I was also researching the place of neuromuscular synapsis, i.e. the place where the transmission from a nerve into a muscle originates. It was an interesting study but I missed being with patients.

So I decided to join the orthopaedic department. I realised that this specialisation will enable me to continue my research and put the theoretical research into practice in addition to everyday work. I managed that quite well, I applied my knowledge from the anatomical research into several areas dealing with new methods both during examinations as well as surgeries.

Orthopaedics is connected to sports. The Czech language, in fact, includes two sayings and even approaches – the first one “doing sports will bring you health”, the more sceptic one “doing sports will bring you permanent injuries”. Knowing you personally, you are not a supporter of modern, trendy sports such as golf or squash when performed by managers.

I consider the sport being essential activity that can prevent many civilization diseases. However, it needs to be performed adequately. Then the first claim “doing sports will bring you health” is correct. The second saying contains warning. Very often, when amateur sport fans try to reach the same level as professional athletes, they lack the appropriate medical support. As a result, the long term exhaustion and overstretch might bring severe injuries and degenerative, irreversible changes. I have nothing against golf, it is a nice sport but requires a lot of time which I personally do not have. On the contrary, I consider squash liquidating sport for non-professional athletes because those start playing without appropriate training and particularly warm up. Then they end up in my practice with many muscle and hamstrings injuries.

Since 2010, the Bulovka Hospital in Prague 8 has been a FIFA Medical Centre of Excellence (being the first centre of such kind in the region of Central and Eastern Europe). Its aim is to prevent injuries, improve physical and mental health together with the overall well-being of football players. You start working with very young players at the age of seven…So, given the disappointing performance of Czech football players in June at the Euro Cup, when will the condition and consequently the results of Czech players improve?

The question regarding health condition of Czech players is very pertinent, simply because it is far from being optimal. But we are able to address the issue and to improve it. Already in 2009, I introduced the unique warm up programme, the so called FIFA 11+, in the Czech Republic. However, the programme did not get enough support and attention to be introduced all the way to regions. This was in sharp contrast to other top football countries such as Germany, Italy, Spain and Brazil which have embraced this programme from the beginning. Only after we managed to prove the efficiency and the link to lowering the amount of injuries in expert magazines and also on the level of the Czech national representation team, we were asked for co-operation beginning with the North Bohemian region. We will be very glad to do so and so eventually hope to improve the overall health condition of our players.

I am also happy to share the news about the study that the Czech Republic and Switzerland undertook to research the youngest football generation, aged 7-12 years. The unique results were published in the most prestige American Journal of Sport Medicine. However, our aim was to design an appropriate warm up method for children. So the new programme, FIFA 11+ kids, was born and tested in the Czech Republic, Switzerland, Germany and the Netherlands. The results show astonishing 50% lowering of injury, such results were well beyond our expectations. The programme is now ready to be launched world-wide, which is also very good for the reputation of the Czech Republic abroad. Besides that, we are also active in other projects, such as juvenile osteochondrosis dissecans of the knee in football and also prevention of sudden cardiac arrest, which is a serious worldwide problem.

Most of my foreign friends living in the Czech Republic appreciate the high-quality Czech medical doctors and the health system in general. Czech medical doctors are also welcomed during various international projects and assistance to developing countries. You personally took part in MEDEVAC project, when Czech doctors were assisting to refugees in Syria. Don’t you personally regret that the work and quality of Czech doctors is not recognised by the Czech population?

Yes, it is a fact that the quality and work of doctors is not valued adequately. Unfortunately, the prestige of a doctor and patient relationship is also affected. General population believes that doctors’ salaries are horrendously high. However, most people forget that night shifts, emergencies and shifts during holidays are included in these statistics. Doctors must perform these shifts, not only to the detriment of their own personal free time but also health. Nobody in our country doubts that additional working hours should be compensated but when it comes to doctors, people feel it is part of their mission. However, doctors must be compensated financially, so they can be fully dedicated to their work and be able to provide for their families. In the Czech Republic, all medical care is covered from the general health insurance. If patients were required to pay for their irresponsible behaviour and self-damage in form of smoking, alcohol abuse and obesity, then the relationship doctor – patient would be different. We saw how this approach was useful in dental medicine. Special health coverage, known in the Western countries, would be useful and would bring additional finances into the overall health system.

Doctors are often regarded as role models due to their specialisation. What is your approach to sports?

I try to get as much physical activity as possible, even at work. I take stairs instead of the lift. I do not have time for team sports but I ride a bicycle, regularly as a warm up during work days, with higher intensity during weekend. I like to swim and windsurf during my vacations. I also enjoy mountain hiking in summer, and skiing in winter.

Jiří Chomiak with world famous football player Cristiano Ronaldo

With regards to the life-style and work-life balance, how do you handle the enormous workload? It was impossible to find time for our interview, since on Mondays, Tuesdays and Thursdays you perform surgeries during the day and then you are at your practice, on Wednesdays you have nightshifts on Friday you were flying to the Olympic Games in Rio de Janeiro. During the year, you also accompany many sport teams to various matches and championships.

I believe that it is up to every individual to find their own life philosophy. I truly enjoy what I do and that helps me to deal with the workload. You rightly mentioned that I spend most of my time working. I also enjoy the scientific work as it leads to the feeling of satisfaction that we are able to expand our knowledge on the global scale. And then comes the vision of the weekend, when I am able to relax, spend time with my family and do sports. The fact that I am a FIFA medical committee member brings me to various sport events, which means a lot of travelling but I enjoy connecting with people around the world and seeing new places. I also like making new great friendships.

What are your final words for Czech and Slovak Leaders readers?

Being a medical doctor, I advise the general population to find a healthy life style and sport that they like. Avoid heavy consumption of both food and drinks, so you need us, doctors as little as possible.

As a professor of Charles University, I would like to dedicate my last words to the new generation of doctors. Be rigorous and focused, sacrifice a little from your own comfort, make sure you constantly study even abroad and try to work on expanding our existing knowledge further.

By Linda Štucbartová

and his three (extra) ordinary lives

Jan Koukal

Former Mayor of Prague, ambassador, and university lecturer used to attend prestigious conferences in Davos during previous regime. As a former physicist, he still tends to relax while working out equations and reading expert studies in Europhysics News. Even though he is not a diplomat anymore, he still represents the Czech Republic at the well-known International Institute of Applied System Analysis. What made him come back to Czech politics and run for the Senate in the fall elections?

How do you recall your first extraordinary life in politics?

I must say that I entered politics by chance. One evening, my neighbour knocked on my door looking for someone with university education and academic titles to present at the election ballot. I agreed provided I would come last. And the rest of my story was summarised in the introduction. Being a scientist, I truly enjoyed working on systemic level changes with regards to a new strategy and municipal administration. We recreated the democratic system and despite the intense level of privatisation, there were no big scandals during my term.

When looking back at your career as a Mayor, what do you consider the biggest achievement?

I am proud of the restoration of the Municipal House in Prague. I was pleased to see how newly restored companies with pre-war traditions were interested in carrying out the work. All forms involved were truly proud to participate in such an important symbolic project. And now we can enjoy the Municipal House shining in the Slavic Art Nouveau style.

Now, let us move to the next stage of your career – the diplomatic one, first in Brussels.

As with my political career, I was hesitant at first. However, after six years in politics it was almost impossible to go back to advanced science. But the entry of the Czech Republic to the EU represented another systemic level change and I got the offer to lead the Prague House – the representation of the city of Prague in Brussels. Again, I had the opportunity to create something new – relationships with the European Parliament, with the Commission, find partnerships etc. During this period, I appreciated the skills I had acquired as a theoretical scientist, this time particularly associated with the knowledge of languages. Due to the fact that the textbooks for my specialised discipline were not translated,

I had to learn not only Russian and English, but also French and German. And from the time being in the Mayor’s office, I had the appropriate network, including friendship with the Mayor of Brussels.

And how was the journey from Brussels to Vienna as a destination that is regarded as the top and final for the diplomatic career?

When I came to Vienna, I had to deal with two issues. The first one being nuclear power plant Temelín, the second one being, for an Austrian politician and “Sudetendeutschen” organisations, the controversial Beneš decrees. With regards to the former, my background in physics represented a great advantage, particularly for television and radio debates. I also made use of contacts from my period as a Mayor. The former Mayor of Vienna, Mr. Zilk, had close family ties to the Czech Republic and he was very helpful with regards to strategic documents, such as the housing policy etc. The current Mayor of Vienna, Mr. Michael Häupl, is a chemist by profession and we have been friends for many years. Therefore, I could concentrate on crucial bilateral issues as well as on the support of the Czech community abroad. The Czech community in Vienna has a long and significant history, since Vienna was the city with the largest Czech population in 1905.

You liked Vienna so much that in fact you have never left…

I am still active at the International Institute of Applied System Analysis. The institute addresses issues pertinent to mankind, such as energy, food supply, water supply or diversity of various parts of population. There are people of various professions and backgrounds involved – diplomats, Nobel Prize winners, professors, CEOs and also entrepreneurs. Czechoslovakia was a founding country, but the Czech Republic has left the institution with regards to the budget cuts in 1990s. I am glad that my participation enables other Czech citizens to attend conferences as well as keep in touch with the latest research and trends.

Now let us discuss the current phase of your life – you being an entrepreneur and a candidate for Senate.

My father had started a family enterprise but it was primarily my brother who helped him during my active career in politics. Together, we employ approximately 100 people in several enterprises and naturally we feel a great responsibility. As my father was a biologist and a chemist, he held several patents. We started to produce chemicals designed to protect wood, later we added machinery and now even electronics and cryogen techniques, which is my specialisation. It is our advantage that we do not sell our products either to politicians or to municipalities. After my father died, I decided to help my brother.

So what brings you back to politics?

Despite the fact that I am busy with the enterprise and lecturing at the university, I just cannot sit in the pub and criticise current affairs. I have eight grandchildren and so I feel the need to hand the country to them in a better condition. It is not enough to be critical and write an article from time to time. I am an independent candidate supported by the Party of Entrepreneurs of the Czech Republic, a conservative and moderate right wing party. In case of being elected to the Senate, firstly I would like to focus on foreign policy. I have a feeling that nowadays, both deputies and senators like to travel to get to know foreign lands but the overall strategy design to protect interests of our state is lacking. The second area I would like to cover is the legal order and its notorious complications. I personally see how obstructed I am by nonsense laws and regulations and I sense in certain aspects as if totalitarian regime with the presumption of guilt rather than innocence returned. Just very recently, there was a novelisation of the law restricting freedom of gathering, since the Police can nowadays dissolve any gathering merely at their own discretion. However, it took 200 years of fights to get this freedom. Therefore, I will try to nullify many laws. I wish we returned to the very beliefs that started with the Velvet Revolution – more freedom and truth. It makes me sad to see that the opposition is currently quite weak and so the inevitable democratic process of check and balances is at stake.

And your final words to Czech and Slovak Leaders readers?

Thank you for your patience. I wish to all of us more wisdom and less emotions during decision-making moments including in the fall elections. Of course I would like to be elected to make sure I can start working on my vision. However, if it is not me who is elected, I wish all the success to a candidate who is better and has a more articulated vision and programme.

By Linda Štucbartová

(A)political interview about politics from a broader perspective, civic education, leadership and reasons to smile.

Miroslav Kalousek, Chairman of TOP 09,
Photo by: Nguyen Phuong Thao, Reflex

Miroslav Kalousek is one of the most experienced Czech politicians. Since 1990, he has been engaged in the civil service sector. He began as an expert and advisor, and since 1998 he has served in the Parliament. Prior to co-establishing political party TOP 09, he was the Chairman of Christian and Democratic Union – Czechoslovak People’s Party. When Miroslav Kalousek was the Minister of Finance, he was twice named by the Emerging Markets journal the Minister of Finance of the Year 2008 and 2011 for the sphere of developing European economies. Since 2013, the party TOP 09 has been a part of the opposition. He has the reputation for being a very smart and at the same time very tough conversational partner. Personally, I very much enjoyed our interview and he smiled at me from time to time. And being a gentleman, he stood behind me during our picture being taken together, so the height difference would not be too disturbing. Although our interview took place on a sunny summer day, there were some serious topics mentioned that might serve as a warning about possible storm coming and hitting the Czech society.

Mr. Kalousek, after so many years in politics, are you still able to look at politics from an eagle-eye perspective?

Quite the contrary, the older I get and the more experience I have, the bigger chance there is for a broader perspective. On the other hand, it is hard to expect that any active politician pursuing a certain ideology path would be totally objective. But the longer I am in politics, the more I understand the system and I am capable of distinguishing the important issues from the irrelevant ones.

How would you introduce the Czech Republic in 2016 to someone who does not live here and so he or she is not immersed in the everyday political life; such as to an expat manager coming to work in our country?

The Czech Republic is a very happy and a rich country with a stabilised market economy. Economically, we are doing well, but there are some structural risks that will surface sooner or later. The great dependence on the automotive industry might be the first one to mention. We are a democratic country, historically we used to be a satellite country of the former USSR and the in influence of Russian propaganda has been extraordinarily high. The fifth column of Russian propaganda is present at the level of central public offices and institutions. We face the situation when the long time established system of liberal democracy and political parties is to a certain degree threatened by the attempt to raise the level of autocracy and apply the corporate management model.

According to the latest polls, Russian President Putin scores as more popular than German Chancellor Angela Merkel. How do you perceive such result?

I am not surprised but it is very sad news. It reflects a certain intellectual slip in the Czech society that shows our relationships towards the European Union as well as towards Russia. It looks like we have two political representations and two Czech Republics and each of them wants to go the opposite direction. It does not come as a surprise that I am a supporter of the Czech Republic belonging to “the hard-core” of the European Union and fulfilling its membership duties within the NATO. Although it is necessary to include Russia in a dialogue and have the best relationship possible, I still consider Russia being the number one security threat with regards to the international and defence policy.

How come we find ourselves in such a state after almost 27 years since the Velvet Revolution?

Democracy is a system where you make mistakes. Everyone does and mistakes happen as well while you run a country. Our biggest mistake was taking freedom for granted for a long time. Freedom actually fell into our laps after the system fell apart and we did not have to fight for it. Free liberal democratic environment is not a given, we have to fight for it and also nurture it every day. We have managed to set up a standard system of democratic institutions establishing all democratic processes and mechanisms within a short time but we have forgotten to answer the question whether we will have enough democratic people. Unlike West Germany after the World War II, we have underestimated the “civic education”, as it used to be a derogatory subject during the communism. We have not put sufficient effort to make sure that a citizen is aware about the principles of liberal democracy, their own place in the system, own rights but also own responsibility to be able to distinguish early warning signals that might put liberal democracy in danger. In Germany, they have dedicated decades to answering a question about how come that such culturally developed country had turned into a brutal dictatorship. But such process does not happen overnight. It is a sequence, similar to the storm coming. The rain does not start suddenly, clouds come first, followed by the wind and then lightning appears. A society that takes care about civic education is able to identify warning signals in time. However, the Czech Republic is still a country with an unpredictable past. We have spent little time discussing history, particularly finding an answer to the question: “How come we have lost our freedom?”. The answer corresponding to the Czech mentality goes: “It is not our fault, it was someone from outside who is to blame”. But this is not true, quite often we lost our freedom ourselves and I do not want to see repeating it.

What would you have become in case you had not entered politics?

I was not in a position to be able to choose. I come from a little town and when I was 15, I received a report saying that it would be suitable for me to be raised by the working class and so I could only choose between two vocational schools – the one to become a fisherman and the other one having chemical specialisation, the latter offering the possibility of graduation. So after I became a worker myself, raised by the working class, I entered the University of Chemistry and Technology in Prague. In 1990, I got the offer to join the public sector which I declined at first. Had I not joined, I would have probably continued in the career in the chemical industry. However, my dream at the age of 14 was quite different and quite clear. I wanted to go to the agricultural school in Tábor and then Agricultural University and to breed cows. But I was not allowed to attend that kind of a school.

Now, I will ask you as a citizen…What is the central theme for the upcoming fall elections?

We will have two types of elections, regional elections and in some parts Senate elections. Protection of freedom is definitely the strongest and central theme for the Senate elections. We are facing the situation when the government uses both executive and legislative measures to limit freedoms such as freedom of assembly or protection against search and seizures. During the last two years, numerous registers have been created gathering sensitive information about citizens. Such data must not be systematically used in any way, there is no capacity to do so. However, there is a danger that this information might be misused. Such steps have been all written down to create “List of Oppression” and we want to ask voters to gather the majority in the Senate so the list cannot be enlarged; and on the other hand, it can be annulled overtime.

Miroslav Kalousek with Linda Štucbartová, author of this interview

Now, this was an answer from a politician. But how would you answer as a citizen?

I believe I would be an active citizen who does not agree with his rights and liberties being taken away and is willing to do something about it. The quality of democracy and freedom does not depend on the top political leaders, be it Svoboda, Kalousek or Babiš. It is decided by the 70-80% of population, who in reality does not care. The task of politicians is to make sure that the percentage of people who do not care is as low as possible. Having said that, I do not believe that it is only up to the politicians. The engaged intellectual elite has been present throughout the history, both engaged and active and even able to influence it. Now, if there are some elite groups, they are silent.

It seems you have anticipated my next question. As our interview is for the Czech and Slovak Leaders Magazine, let us discuss leaders in the Czech Republic and in Europe.

I will not give you any names, as I feel it is inappropriate, especially prior to the elections. As I have already mentioned, I feel there is a lack of leaders, not only in the Czech Republic but also in Europe. Europe now faces a difficult situation, there is a migration crisis next to the financial crisis and we see various conflicting interests of single member states. I remember times when Europe had much stronger leadership, formed by Kohl, Mitterrand and Thatcher. I have asked myself a question that is rather to be answered by sociologists as to whether the last true leaders were not those of the war generations having experienced borderline situations. These leaders were then replaced by administrators. In good times, administrators are popular, since they are not controversial. In decisive moments, when difficult decisions are to be made and it is necessary to accept a responsibility that can be considered even suicidal, the true leadership is missing.

I have come across your statement at your website: “There is never enough smile, it is a crime not to smile once per day”. So, whom do you smile at and what gives you a reason to smile?

Well, I hope that I have smiled at you… I always make sure to smile at people who work at the reception office. I see how some colleagues enter like a “dead zone” and enter without a greeting. I do not understand this, I believe that even in times I do not feel like it, I should enter with a greeting and smile. Frowning is a part of the Czech mentality but we have many reasons to smile. Despite all the problems we are facing, let me return to the beginning of our conversation when I mentioned that the Czech Republic is a very happy and rich country.

And what are your final words for Czech and Slovak Leaders Magazine readers?

I keep repeating the same message; so my appeal goes like this: “Let us not be indifferent”. I consider our own indifference as the biggest challenge for the Czech Republic. We can have different opinions but let us discuss them, let us put these forward. However, we cannot be indifferent, stop paying attention, be apathetic, keep saying that it does not matter. Because then comes the moment when something happens and it is too late since we have been indifferent for too long. Being an active citizen is not limited to casting a ballot once in four years. An active citizen is continuously very attentive to the course of events and makes himself or herself heard when feeling his or her own rights are being limited.

By Linda Štucbartová

On Beauty and Challenges of SMEs

Rostislav Jirkal, Associate Partner, QED Group and former CEO, Servodata

Small and medium-sized enterprises (SMEs) are often referred to as the backbone of the European economy, providing a potential source for jobs and economic growth. In fact, they represent 99% of all businesses in the EU. In the Asia-Pacific region, these businesses are the engines for growth and innovation. It is a great opportunity for the Czech and Slovak Leaders magazine to present Mr. Rostislav Jirkal, a former CEO of Servodata, who after 25 years in ICT family business is leaving the company to join another SME, consulting company QED Group. He shares with us his journey, important milestones, experiences gained and difficult moments. What is it like for an owner of an SME to negotiate with a multinational Goliath? And what is he looking forward to in his new consulting career at QED Group?

What does it feel like to hand over originally a small Czech family business to the international consulting group BDO, currently ranking among the top five largest consulting companies?

It feels special. I’d compare it to wearing the same coat for 25 years, then taking it off and being able to wear any style jacket I choose. I realised that after a certain time spent at the top as CEO, more and more tasks and assignments kept piling on, and at the expense of activities I found energising and more fulfilling. So right now, I am looking forward to the new beginning, launching new projects and feeling a renewed sense of excitement, passion and purpose.

Let us now discuss the three phases that each family business has to go through in order to develop and grow successfully, and eventually become a part of the global market. These phases can be divided into: 1) the early phase, dedicated to the development of an enterprise and its brand; 2) the middle phase, devoted to attraction of customers and development of a team; and 3) the final phase, focused on systems, processes and finance in order to prepare for an acquisition. So, let us go back 25 years, just after the Velvet Revolution, when you and your brother founded the Servodata company.

Only a handful of people realise how unprecedented the period of early 1990s was. The market was hungry to get new technologies. But the way to reach the customer was not straightforward. There were many administrative barriers, including an embargo on importing the latest technology from Western countries. We were launching unknown products, trying to explain their benefits to the market. I recall difficult negotiations with the top representatives of the Seagate company who found it hard to believe that someone in Czechoslovakia could be interested in a 20 MB disc! My career was made by my ability to identify new directions and trends and then evangelising them to the often doubtful market to become more receptive. Using some current entrepreneurial language, I was totally “in the flow”; that is, I was doing what came most naturally to me, and that served my company well. And so with our growing reputation, we attracted partnerships with top global brands, such as EMC, Compaq, IBM and many others. Thanks to these powerful partnerships, Servodata’s brand became very strong. The innovation stage came back later when I built a team dedicated to technology training at the Datascript company, and also started to develop the overall market by introducing open source tools.

What did the second phase, which was dedicated to the team development, look like? Servodata was known as a talent incubator for multinational companies, with many of its former employees working nowadays at global companies such as DHL, Avnet, HP and Red Hat, among others.

I believe in the rule saying you should always hire people who are smarter than you. Since the beginning, we created a distinct culture to ensure that all our colleagues, both men and women, could show off their skills, as well as receive the support and encouragement to become better experts than us, the owners. So we applied two trends in practice, succession planning and talent management, which were heavily debated. The challenge was, since we were bringing totally new technologies, that we could not find anyone familiar with these on the market. I remember hiring an academic expert who did not speak English. We provided intensive language training and after three months this guy was ready to pass an extremely demanding certification process in the United States. As we could not compete with multinational companies with respect to salaries and benefits, we instead created a company culture that was open, innovative and creative – an environment very much today sought after by top talent. I was very pleased to hear the reaction of potential candidates during interviews who heard that Servodata was a company where “life is good”.

Let us move to the last phase, where a company prepares to be acquired. This phase is usually unknown and occurs behind scenes. How difficult was it for you to concentrate on processes and systems and also lead negotiations for the hand over? Did you feel like you were a small David facing an international Goliath?

This phase is extremely demanding, but thanks to the fact that we have been a partner to various global companies since the beginning, we had to adjust to their structures and processes. We had at our disposal not only the latest information systems, but also internal communication processes and overall systems of training and development. As far as negotiations with investors were concerned, these were thrilling and full of creative energy. A small Czech company, represented by a small team of three or four individuals, facing a global corporation with a team of thirty people! I had to be familiar with all aspects of negotiations, beginning with financial terms, all the way to final negotiations when we were examining each word in the contract. I’ve always relied on a strong team, this time being composed of external advisors, so we were neither surprised, nor taken advantage of. I am truly proud of the value that we have left to our foreign partners when handing over parts of the company, not only the financial value, but the value in its ability to remain healthy and grow under new conditions. The same was true for the process of acquiring new companies, such as M.S.D. or Abakus Distribution; the value of those companies was later multiplied thanks to successful integration into the structure of Servodata Group.

What is the most profound message you would like to pass on to other owners of SMEs?

As I said, I’ve been able to successfully complete the life cycle of an enterprise: defining a vision, building a structure, building a team, proving a viable concept of a repeatable business model, up until the final phase of monetisation for owners and shareholders. Thanks to being an expert partner in advisory bodies of several global corporations, I was able to become familiar with global organisational structures, including top management, knowing both the pros and cons of how these corporations work on a daily basis. On top of that, as I learned to understand and see the world from an investor’s point of view, I gained valuable experience in both the acquisition and divestments processes. So naturally, I learned to deal with different company cultures. I think there are only a few issues left out there that might surprise me! I want to use this experience and knowledge to help business owners to identify the best development path for a particular defining moment in their development. I am aware of many paths and cul-de-sacs which could lead them astray from their desired end-game, and how to avoid these, saving headaches, and well as time and money, which of course is totally essential for the health of an enterprise itself during this journey.

What are you looking forward to in your future consulting career?

I am looking forward to drawing upon my first hand experience to co-create new visions for inspiring companies, and to help solve situations, from a consultant point of view, which appear unsolvable from the perspective of those involved in it on daily basis. Succession planning in SMEs is an issue that has become very pressing in the Czech Republic. It was not by chance that I was able to successfully complete the enterprise life-cycle with Servodata Group. There is a measurable process and proven methods. That said, anyone trying to solve the puzzle of succession planning should start to think about the team, internally and externally. Despite the so-called war on talent being mentioned in media headlines, I see many talented people around who are not given a chance. The feeling that “I am the only one to be able to solve that” is an illusion and does not serve anyone

And why did you decide to join QED Group?

I perceive QED Group as a company of enthusiastic professionals, led by Radvan Bahbouh, a leading Czech coach, a psychologist, a psychiatrist and also a mathematician, who has unique, proven and long-time expertise in building high performance teams. There is a vast range of products QED Group offers, and I find that all of these reflect the latest scientific work which combines mathematics, psychology and other disciplines. For example, “sociomapping” is one of those unique tools, which became famous also thanks to the MARS 500 project. Unfortunately, there is a myth that only the richest multinational corporations can afford the best products with regards to learning and development. Based on my direct experience, I know that SMEs are vitally dependent on finding maximum efficiency in how they function. And, I should mention again, it is the SMEs who are disrupting current dogmas, and are taking the lead to contribute to the growth of economy and bring innovation. I see my new mission to assist and help them.

By Linda Štucbartová

Nikos Balamotis, a managing partner of QED Group was featured in Leaders in 2014; the interview can be accessed on the following link: 

https://issuu.com/czechleaders/docs/2014-2/83?e=15342938/11344763

Radvan Bahbouh, founder of QED Group on Rostislav Jirkal…

In almost ten years I’ve known and interacted with Rostislav, I’ve never found him in the same place as the previous time. Rostislav has this tendency to put things in motion, and in the midst of all that he is able to discover new roads, while doing it thoughtfully. From my perspective, it seems that he was able to transform his passion for paragliding into his profession. Unlike his untidy office desk, his inner world is very orderly, but not static. I have a feeling he’ll still keep evolving and rearranging it in new ways, and so developing himself and his surroundings in ever more beneficial ways.

“I feel a passionate responsibility to educate the next generation.”

Adam Stewart

I met Adam Stewart, the Artistic Director of Prague Youth Theatre (PYT), after the play “Empty Hands” made it to Prague media headlines this spring. A shortened version of the play was chosen to compete for the highest Czech theatre award “Student Thalia”. ‘Empty Hands’ by Adam Stewart explores the Holocaust in Czechoslovakia and Terezin through the eyes of Jewish, Czech and German children. It aims not only to discuss the dark past of European history, but also to serve as a warning to the modern day political situation in the world.

Like many people associated with theatre, Adam is a modest introvert. However, I believe he truly represents the Ambassadors Without Diplomatic Passports with his PYT work bringing together Czech and international students. He often presents current issues which transcend borders. These issues prepare students for real life situations. In addition, Adam is presenting Czech culture to foreign audiences, by being a member of the highly successful cast of the English play “Záskok” at the famous Czech Jára Cimrman Theatre.

For my interview with this actor, director, playwright, and entrepreneur, I chose a format based on Joseph Campbell’s Hero’s Journey. This method works well for most successful plays and stories.

How do you perceive today’s world?

Sadly I do not perceive the world particularly fondly at the moment. Brexit, the possibility of a President Trump and what seems to be a rise in racism across Europe and the rest of the world is terrifying to say the least. As a youth theatre leader I feel a passionate responsibility to educate the next generation in order for them to change the future. It’s naïve to think that Prague Youth Theatre can impact the world as a whole but if the young people who work with us enter adulthood wiser, more open minded and tolerant of others then we will have succeeded in a small way.We have been very lucky at PYT to have been able to offer our students international theatre exchanges and competitions. Our students have visited Ireland and Croatia to take part in theatre workshops and we have been visited by the same groups and a group from Serbia. Every year we take part in a theatre competition with youth theatres from France, Russia and the UK here in Prague. These international exchanges offer the opportunity for our students to meet with like-minded individuals and get a better understanding of different cultures, faiths, social backgrounds and language. I believe it is important for young people to be aware of the world outside of their school, family, town and country and the opportunities we offer at Prague Youth Theatre enforce that message.

How do you perceive the position of the Czech Republic?

I have lived in the Czech Republic for 11 years now and I have seen many changes in that time. From an improvement in the choice of cuisine to a more tolerant and progressive society. I call Prague my home now and although the Czech Republic has its problems like any country, I find the Czech people to be warm, open-minded and liberal thinking. Coming from a ‘nanny state’ as I do, it is refreshing to live in a country that allows you to make mistakes without being wrapped in cotton wool. I’m concerned at the moment with some of Zeman’s recent Trumpesque comments but as I said before I believe this is mainly due to a rise in racism across Europe. I have been heartened by the number of anti-racism rallies that have taken place in the city and hope to see that continue. Over the last two years I have been lucky enough to play the role of Bárta in the first official English performance of Jára Cimrman’s The Stand-In (Záskok) and this has given me a huge insight into the Czech Republic and the mentality of the Czech people.

If you were to write a play about your higher calling according to Joseph Campbell’s Hero’s Journey, what was your “call to adventure”?

My call to action was simply that I needed a job. I am a trained drama teacher and had taught for five years at the English International School, Prague. It was time for a new challenge but job offers overseas were not forthcoming. I had been part of a number of youth theatres growing up and had loved the social aspect as well as the rehearsals and performances. So I thought ‘why not start a youth theatre in Prague?’. There were no English speaking youth theatres at that time so I set up a website, found a venue and we performed our first shows in December 2011. Now PYT has become much more than a job and my call to adventure now is to grow the student base and continue to perform high quality drama.

Let us move to the next stage, when mentors play an important role. What role have they played?

Mentors have played a big part in my life. As a student I was trained by some inspirational teachers and youth theatre leaders who instilled in me my passion for the theatre. I learnt a lot about life and the world around me through experiences with youth theatres and many of my lifelong friendships resulted from theatres groups that I was part of. My biggest influence was a teacher/director who ran a youth theatre in my home town that I was part of for many years. In many ways the ethos of Prague Youth Theatre and my style of teaching has come from what I learnt while part of her company. Redford School of Speech and Drama was more than a theatre company, it was a family and I spent much of my social time with the other members of the group. The director had very high standards of performance and we produced some very professional productions. One thing that irks me as a youth theatre director is if audience members leave saying “that was good for kids”. It is my goal that when audiences see PYT shows they leave thinking “what a professional show that was”, “the acting was excellent”. Youth Theatre can be extremely powerful and a high quality of performance is what we always strive for no matter what the age.

The next stage is about tests, allies and enemies… With PYT being so successful and established, have you passed this stage or are there some blocks still ahead?

Thankfully over the last five years PYT has consistently grown and evolved to what it is today. We now have over 150 children and young people who take our classes and we have a number of leaders and administration staff who continue to enable us to expand. The biggest hurdle we face as a company now is how to manage our expansion to ensure that the young people and families that we work with continue to receive the highest level of drama education. This takes many forms… extra spaces, more staff , improving communication with families and ensuring that our performances continue to be to a professional standard. When PYT began we had 20 young people and I was able to teach every group and build relationships with all the students. As we grow it is my job to make sure that every child receives the same level of care as they would have had when we began.

Although Prague Youth Theatre has so far been a success I still have concerns about the perception of youth theatre, in particular drama, in mainstream education. In the UK certainly less and less emphasis is being placed on the arts, particularly drama. In many schools across the UK drama is being stripped from the curriculum in favor of core subjects. Theatre in schools is becoming more and more elitist as can be seen by the current rise of UK public school actors making it big in Hollywood. During a parent meeting a few years ago while I was working at the English International School a parent asked me “why does my child have to do drama, they don’t want to be an actor” and I replied that drama in schools is hugely important for a child’s education. Drama teaches confidence, discipline, organization, to name a few and all of those skills are hugely important for life but also for any career a child chooses to follow. I have never written a CV without including the life skills that drama has taught me. We’re very lucky at PYT that parents see the benefits of a drama education and we often receive very positive feedback about how much children grow in confidence during their time with us.

Reward and coming back with the elixir is the final stage of the journey. Have you found one?

Yes. I’m rewarded every time I watch our students at PYT perform. As an actor I used to love the applause at the end of a performance however as a theatre director of young people it is far more rewarding for me to see the admiration that they receive from an audience. The performance is the objective but the journey that the students take to prepare for the performance is hard work, emotional and at times frustrating. We see young people at PYT growing in confidence and as actors and seeing them receiving applause is one of the reasons why I love my job. One of the projects that I am the most proud of is “Empty Hands”. This is a play that I wrote 5 years ago that tells the story of a young Czech Jewish girl who is taken to Terezin. The story examines how joy can be found even in the darkest of times and the play celebrates the resilience of the human spirit. My colleagues and Prague Youth Theatre supporter Judi Challiner are currently working on rewriting the play and developing a school curriculum to accompany it. Our goal is to publish the finished play, with accompanying curriculum and original music composed by David Talacko. We hope to promote this to schools across Europe to educate them not only about the Holocaust but also as a lesson to current and future generations of tolerance, acceptance and understanding.

We discussed that your plays tend to have open ending and certainly you avoid happy endings. “Theater is there to search for questions. It doesn’t give you instructions.” The plays that our older students perform tend to be issue based dramas. Besides the most recent “Empty Hands” we have tackled issues such as domestic violence or child trafficking. As I said before I believe it is our responsibility at Prague Youth Theatre to prepare young people for the world in all its good and bad. Rehearsing and performing plays that deal with issues that young people face enables students to ask questions, find answers or research the themes raised in the plays. Theatre is a great way for young people to learn and explore ideas in a safe, relaxed and fun environment.

What are your final words to Czech and Slovak Leaders readers?

Come and check out one of our performances in December. We pride ourselves on the professionalism of our productions and the quality is consistently high. Or if you have children, sign them up. Term begins on Saturday, 3rd September. More information can be found on our website www.pyt.cz.

If you’re interested in seeing Jára Cimrman in English please visit the Žižkovské divadlo website at http://www.zdjc.cz.

By Linda Štucbartová, external collaborator of Czech & Slovak Leaders magazine

“Good Diplomats Are Looking for Challenges Even at Easy Times.”

I was looking forward to using the opportunity of accompanying my husband as a spouse to Belgrade to interview H.E. Ivana Hlavsová whom I consider one of the most expert and also universalist career diplomats I have ever met. Flying to Belgrade with Air Serbia on ATR 72 already made me nostalgic and reminded me of my diplomatic travels to Luxembourg, since it was operated by the same type of aircraft. But I was curious to hear about the more substantial changes that have taken place in diplomacy in recent years, besides the fact that most travels have become more comfortable. The nostalgic mood continued when I was in Belgrade. Friendly, welcoming people, language and culture similar to ours, I remembered not only my trips to former Yugoslavia but also my studies and research about pan-Slavism. So the second issue of Slavic brotherhood became imminent given the expert background of Mrs. Hlavsová and her profound knowledge of the region. Regular readers would have probably guessed by now that leadership and women in diplomacy represented the last topic discussed.

Mrs. Ivana Hlavsová originally graduated from the Czech Technical University in Prague?. After her experience in private sector, she joined the foreign relations department of the Office of the President in 1992; since 1993 she has been working at the Ministry of Foreign Affairs. Throughout her diplomatic career, she was appointed to several leading position in various sections and departments at the MFA. Her career journey so perfectly demonstrates how versatile and changing diplomatic service can become. She led the Diplomatic Protocol department, became the General Consul in Los Angeles, then director of the Americas’ Department; later she was appointed the executive director of the Czech Task Force for the NATO Summit in Prague, and was also leading the whole Personnel Section of the Ministry, was an ambassador to Slovenia, director of the South and Southeast Europe department and in January 2014, she was appointed as the Ambassador to Serbian Republic. She speaks three foreign languages fluently and can communicate in Serbian.

Mrs. Hlavsová, you will celebrate 25 years in diplomacy next year. That truly confirms the saying that diplomacy is not a just an ordinary profession, that it is a life mission. 

Looking back, if someone had mentioned to me before 1992 that I would dedicate my life to diplomacy, I would not have believed it. On the other hand, such a change depicts the fate of many people of my generation. I studied at the university in early 1980s and I opted for the technical background because the humanities were very much ideologically influenced by the communist regime. So the specialisation “Automated Control Systems” seemed a good choice. After the Velvet Revolution, I started to work on joint projects with an Austrian company but I found difficult to balance my career with the care of two small children. It was by coincidence that I saw and advert for a position at the foreign department of the Office of the President.  Since I spoke three foreign languages, I decided to give it a go. I was hoping to visit Prague Castle and perhaps have a glimpse of Václav Havel, but nothing more. To my surprise, I received a cable from the post office about me being accepted. So I started in 1992, but soon after the elections came which heralded the dissolution of Czechoslovakia and led to Vaclav Havel’s stepping down from the office. My boss at the time, Alexandr Vondra became the First Deputy Minister of Foreign Affairs and so I followed him to the Czernin Palace. Even at that time, I was still considering a diplomatic career as a temporary issue. But as you mentioned, next year, I will celebrate 25 years being in the foreign service.  The beginnings were fascinating and challenging at the same time. At the age of 33, I was the Director of the Diplomatic Protocol Department, the very post often reserved to the most senior ranking male ambassadors. At that time, there were only two women on the same position in the whole Europe – my colleague from Sweden and I.

You mentioned how fascinating the period of the first decade of the Czech foreign policy was.  Within a decade, we managed to enter NATO, the EU and organise the NATO Summit in 2002 that was the unprecedented multilateral event ever held in the Czech Republic. But now, the diplomacy has become much more “ordinary” business as usual.  How do you reflect on such change?

Looking back, we have managed incredibly fast to fulfill the strategic goals that we set up in early nineties. In addition to the entry to NATO in 1999 and entry to the EU in 2004, we should not forget entry into the Schengen zone in 2007 and the EU Presidency in 2009. So it might seem that we have achieved the goals. We have had other goals since then, but they might not be perceived as spectacular when compared to those already mentioned. We have had to define our position both in NATO and in the EU, and also on the level of international community as such. The world is changing and we have to continue to learn how to face new challenges, such as terrorism. This work is ongoing. Overall, the fact that the so-called “existence” substantial issues are lacking means that they have been fulfilled and that is very positive fact. As we see new threats coming on the horizon, I am not afraid that the life and work of diplomats would be dull and boring in anyway.

You had been ambassador to Slovenia, now you are in Serbia. What brought you to the region of Southeast Europe?

You mentioned yourself that diplomacy is a civil service and the possibility to choose a country or a region exists but it is limited especially on the ambassadorial level. So again, it was a coincidence in the beginning. I opted for Slovenia both for professional and family reasons as I preferred a destination in Europe. I experienced EU Presidency of Slovenia in 2008, followed by the Czech Presidency of the EU in 2009. So again, it was quite a unique moment. Then I became in charge of department of the South and South East Europe; just to explain, it means covering the region all the way from Belgium and France to Turkey, with the Balkans in between. After four years, there was a possibility to go and serve in Serbia. For a professional diplomat, it is an extremely interesting country, since it is on its way to fulfill strategic and economic goals and it is also a key player in the Balkan region.

Now, you being very familiar with the region, how do you see the issue of Slavic brotherhood. Is the saying that “A Slav has a brother everywhere” still valid or did pan-Slavism die at the end of the 19^th century?

Let me point out that my answers will be specific with regards to South Slavs and their relations to the Czech Republic. I have experienced Slovenia as well as Serbia, I have travelled elsewhere in the Balkans and I confirm special ties exist between the Czechs and south Slavic nations, including the Croats, Bosnians and Montenegrins. It is hard to say whether it is more due to shared history or it comes from ethnic roots. My personal observation is that ties from past are still considerably influencing current relations. Greater part of the Balkans used to be a part of the Austro-Hungarian Empire and I see many personal and family ties that translate into mental ones. The Czechs and Slovenians used to be particularly close as they were the only two Slavic nations in the Austrian part of the Monarchy. Last but not least, language similarity plays a considerable role in easier mutual understanding. The case of Serbia was totally different, but they also played an important role. As Serbs gained their independence already in the 19^th century and so together with the Montenegrins they were regarded a symbol of Slavic fight for independence in the Czech lands. The answer to your original question perhaps got more complicated but the fact is that there are no easy and straightforward answers in the Balkans.

From left: Tomislav Nikolić, President of Serbia and H.E. Ivana Hlavsová, Ambassador of the Czech Republic to Serbia

You touched on the importance of historical roots that were supported by intensive diplomatic ties during the first Czechoslovak Republic. How much were the relations affected by the wars during 1990s?

The answer to your question is linked exactly to the excellent diplomatic relations with the countries of the so-called Small Entente, an alliance formed by Czechoslovakia, Yugoslavia and Romania in 1920 and 1922, further supported by France in bilateral treaties. It is no wonder that the exquisite and large building that our embassy is located in dates back to 1920s and together with embassies in Bucharest and Paris, these buildings belong to the most beautiful representative buildings we have ever had. This very fact shows the importance of the mutual relations that lasted until the World War II. Following the relationship built throughout the 19^th century, many Czech and Slovak artists, architects, engineers visited the region and continued fostering mutual relationships that went far beyond the horizon of the top political and diplomatic relations. The importance of the Small Entente might have been forgotten in the Czech Republic; however, it is still very well remembered and recognised here. The next historical moments are represented by the Velvet Revolution and also by the Velvet Divorce, both of the events highly valued given the violent fate of the region in 1990s. The consequences of the conflicts, not only political, but also economical can be still witnessed until today. The overall frustration and despair over the lost decade is still present. However, back to bilateral relations, as they were built on the solid foundations, they continue to be very positive. We touched upon all similarities and common shared history.  The Czech Republic is a proud partner to support Serbia in reaching strategic goals, particularly joining the EU.

Last but not least, this question will touch upon the issue of women in diplomacy. You mentioned that in the early stage of your career, there were the only two women on the position of the Director of the Protocol. How is the current situation at the Czech Ministry of Foreign Affairs?

I regard this question to be the most difficult of those you have asked. For twenty years, since I have been in the leading positions at the Ministry, I have been interested in this issue.  I did my own statistics with regards to the number of women at the top positions, such as General Consuls or Ambassadors. We have not managed to exceed considerably the steady number settled at around ten percent. The trend of the so called “leaking pipeline” that is known from the corporate world is also present in the public service. Women still make up 50% or even more at the Diplomatic Academy, which is the entry level to the Ministry. To be fair, diplomacy is more difficult for women at the early stage of their career when they are having children. Even though we made sure that maternity leave period would be counted as a period of work according to the Career Code that determines promotions. Greater interest of young women in entering diplomacy is also due to the fact that diplomacy is a part of state service administration which guarantees a stable and steady income. Several years ago a kindergarten was opened at the Ministry of Foreign Affairs and we managed to introduce “job-sharing” to offer part-time work for women returning from maternity leave.  So, overall the situation is improving. What is interesting to mention is that there are more women in leading positions in the public service in the Balkan region. This might be one area where the region can be inspiring for us.

By Linda Štucbartová

“Success hinges on our ability to address the market.”

Mr. Jiří Rusnok (55) was appointed the new Governor of the Czech National Bank for a term of six years starting on 1 July 2016.

“I am greatly honoured to be able to stand at the helm of this unique and internationally acclaimed institution. My colleagues and I will do all we can to ensure that all the tasks conferred on us by law, particularly in the areas of price and financial stability and financial market supervision, continue to be performed with the utmost expertise and care and to the benefit of the Czech economy,” said Mr. Rusnok.

Mr. Rusnok serves as the fourth governor of the CNB since its establishment in 1993. His predecessors were Josef Tošovský, Zdeněk Tůma and, most recently, Miroslav Singer, whose current mandate expired in June 2016 and could not be extended.

Mr. Rusnok has been a member of the Bank Board, the supreme governing body of the CNB, since March 2014. He decided to step down prematurely due to the requirements arising from European law, which stipulates that a governor of a national central bank is appointed for a term of office of at least five years.

Mr. Rusnok is an experienced Czech politician and economist.

In the 1990s, he worked as director of a department of the Czech-Moravian Confederation of Trade Unions. His political positions included Minister of Finance from 2001 until 2002 and Minister of Industry and Trade from 2002 until 2003. Among his professional appointments were President of the Association of Pension Funds in 2005–2012 and President of the Audit Public Oversight Council. In 2010–2013, he was a member of the government’s National Economic Council (NERV). From July 2013 until January 2014, he served as Prime Minister of the caretaker government.

Mr. Rusnok, your appointment has raised high expectations both among supporters of adoption of the single currency and among those who disagree with the policy of currency intervention and weakening the Czech crown in order to support Czech export trade. What is your vision with regard to the activities of the Czech National Bank? And to what extent has this vision been influenced by the recent Brexit referendum vote in the United Kingdom?

My role as Governor of the Czech National Bank does not translate into being a supporter of any particular interest group either in society as a whole or in the economy. My task is to govern the central bank together with the other members of the Bank Board in order to fulfil its role in accordance with the law, that is to maintain price stability, supervise the financial system and support its balanced development, and ensure smooth circulation of money and smooth payments.

Which tools we use to attain these goals always depends on the specific circumstances and conditions in the economy. Given this context, Brexit is only one of the circumstances, or uncertainties if you wish, that our decision-making must take into consideration.

Your communication skills have often been mentioned as a big advantage in comparison to your predecessors. The fact that already during your second week in office you organised an informal breakfast for journalists, supports this contention. How are you going to use this strong skill? And what is your notion of leadership and what other leadership qualities do you consider important?

I do not like to judge myself. I leave that to others. As you mentioned, communication is truly essential, even for the central bank. Our success hinges on our ability to address the markets – in terms of both experts but also the wider public – and to explain why we take certain steps. Only in this manner can we fulfil the mandate given to us by law.

Your experience is vast and diverse. It comprises not only high political functions, but also leading positions in professional associations. Despite the fact that the position of central bank governor is not political, many commentators consider your political experience to be your advantage. On the other hand, you seemed not to miss top politics, as you made remarks about the “unprecedented pressure” you faced when you were Prime Minister. Is there anything you miss about top politics?

I definitely see myself as being practically oriented, so expert and management roles are the ones that come most naturally. The position of governor is somewhere in between a pure expert position and politics. I therefore hope that I will be able to successfully make use of my experience combined with my skills.

With regard to the decision not to adopt the single currency any time soon, which central banks might serve as an inspiration and which ones might be useful for closer co-operation with regard to the EU’s banking union project?

Formally speaking, the Czech Republic is still obliged to adopt the single European currency. However, we have the possibility to decide when we will do so. The Czech National Bank is part of the European System of Central Banks of the EU28 countries. We have very close ties with other central banks all over the world. The Czech National Bank belongs to the group of ten central banks that established and then successfully implemented inflation targeting. Our technical know-how in this area is highly valued and we are one of the top players in this area.

It seems that you are quite successful in protecting your private life. What are your hobbies and what is your approach to work-life balance?

I try to live a normal life. It gives me the necessary freedom and inner balance. I strictly separate my private life from my work. I relax in the great outdoors. I like gardening and sometimes even doing some sports.

As a supporter of diversity, I cannot refrain from asking why there are no women represented in the current Bank Board. Do you see it as an issue?

Right now, there are no women represent- ed, but this has been the case for most of the modern history of the Bank. We will see next time, during the next round of rotation. Then the situation might change. Last but not least, the Bank Board members are nominated by the President of the Czech Republic. It does not fall within my competence.

What are your final words for Czech and Slovak Leaders readers?

I send my regards to the readers, I wish them all the best and I assure them that they do not have to be concerned about their savings and about the stability of the Czech currency.

By Linda Štucbartová

About the Czech National Bank

The CNB is the central bank of the Czech Republic, the supervisor of the Czech financial market and the Czech resolution authority. It is established under the Constitution of the Czech Republic and carries out its activities in compliance with Act No. 6/1993 Coll., on the Czech National Bank, as amended and other regulations. It is a legal entity under public law having its registered address in Prague. It has seven regional offices in Prague, Ústí nad Labem, Plzeň, České Budějovice, Hradec Králové, Brno and Ostrava. It manages its assets, including international reserves, with due diligence. Interventions in its activities are only permissible on the basis of law. The CNB is a part of the European System of Central Banks and contributes to the fulfilment of its objectives and tasks. It is also a part of the European System of Financial Supervision and cooperates with the European Systemic Risk Board and with European Supervisory Authorities.

The supreme governing body of the CNB is the Bank Board, consisting of the CNB Governor, two Vice-Governors and four other Bank Board members. All Bank Board members are appointed by the President of the Czech Republic for a maximum of two six-year terms.

Current members of the CNB Bank Board

• CNB Governor: Jiří Rusnok
• CNB Vice-Governor: Mojmír Hampl
• CNB Vice-Governor: Vladimír Tomšík
• CNB Board member: Vojtěch Benda
• CNB Board member: Lubomír Lízal
• CNB Board member: Tomáš Nidetzký
• CNB Board member: Pavel Řežábek

Global Summit on Corporate Sustainability
Bringing the World to Prague Because There Is No Time to Waste

Imagine a conference where major experts and representatives from government, corporations, SMEs and start ups as well as NGOs meet to discuss common responsibility and actions to be taken to improve the lives of population coming from all over the world as well as from the Czech Republic.  The issues debated and suggested do not concern projects and populations in faraway countries of Africa and Asia, but specific projects are shared that make a difference to people in the Czech Republic, such as the case of SAP and its Autism at Work initiative.

Imagine a conference that takes place not at an expensive five-star hotel, but in inspirational premises of the National Gallery.

Imagine a conference where panels are gender balanced; in many cases the organisers actually had to look for men to participate.

Imagine a conference, where the key note speaker, Dr. Tererai Trent, is the one of the most internationally recognised voices for quality education and women’s empowerment and the one of the most popular hosts of Oprah Winfrey.

Imagine a conference that serves vegetarian food to reduce carbon footprint, has music entertainment during the breaks and visual recordings to remind attendees of key messages.

Lucie Mádlová

Meet the woman who made it all possible on May 4, 2016 in Prague. It is a pleasure to introduce you to Lucie Mádlová, the Global Compact Network Czech Republic Representative and Executive Director of Association of Social Responsibility.

Lucie, how do you perceive today’s world?

It is wonderful how many opportunities and how much beauty we can enjoy in today’s world. It is beyond comprehension that we do not appreciate what is given, and by excessive, rakish consumption and unsustainable behaviour we are destroying lives of future generations. The more we have, the more we desire. We buy things we do not need, we are destroying natural resources, and our behaviour has a substantial impact on climate change. The data is more than worrying. More than a billion people does not have access to drinking water, while to many of us it literally trickles through our fingers. Three billion kilograms of food are wasted annually, while more than 795 million people are suffering from starvation. We are going to theatres to see disaster movies, not admitting to ourselves we might watch a harsh reality of upcoming days, unless we reconsider our unsustainable behaviour.

How do you perceive the role of the Czech Republic?

Regarding sustainability we are barely scratching the surface. We still have plenty of room for improvements and for inspiration from more developed countries. Our recent study showed that in the interest of sustainability people of the Czech Republic mostly save energy, avoid wasting food, save tap water, and sort waste. The study also confirmed that in comparison to 2013, people are more engaged in global issues in general. In addition, the data shows that 4 out of 5 Czechs think the government should be involved in reaching new Sustainable Development Goals (SDGs), and 3 out of 4 would also include the private sector. It should be mentioned that a young, emerging generation is the one most interested in those topics which fit into its lifestyle. I consider it a positive trend; young people are not selfish, they are considerate and thoughtful, which is a great opportunity for employers. Young people want to work for a society which shares the same values, and social responsibility of their potential employer is a crucial criteria for many of them.

How does it happen that you manage to bring attention to the topics of corporate sustainability to the Czech Republic, to the country where population believes it’s primarily government’s responsibility to fulfil Sustainability Development Goals?

New Sustainable Development Goals (SDGs) were unanimously adopted by the UN member states (including the Czech Republic) in September 2015 with the objective to build a better future for everyone. SDGs clearly sets a direction for upcoming 15 years, leading to eradication of poverty, to a struggle with inequality, and to security of our planet. The wording of SDGs is a result of a collaboration of not only the UN member states, but also representatives of civil society, private sector, and academia of all continents. So, at the Summit Global Compact 2030, we did want to demonstrate to the private sector that SDGs bring opportunities for contributions to not only a better and sustainable future, but also for new investments.

The gender equality is one of the 17 goals, implied in many others. Are you in favour of quotas or do you suggest another approach for companies?  And how do you see the fact that women often do not support women?

Women in the Czech Republic, on average, earn 22% less than men in the same occupation. More than 95% of CEOs of global corporations are men. Current projections show women will not have the same economic opportunities as their male counterparts until 2096. Certainly, something must be done about this. However, I am not sure whether the quotas are the best solution. In recent years companies themselves set ambitious goals to support equality of opportunity within their organisations and within their respective countries. And they are starting to realise that their investments into equality are returning. For example, in 2015 the leading management of Unilever consisted of, for the first time in history, mainly female managers. This is supported by a whole range of global campaigns advocating gender equality in a workplace such as HeForShe or UN Women. The campaign urges men to speak out against any form of discrimination or violence against women in their workplace or in their private life. Many significant figures and representatives – men – of the private and the public sector from all over the world are actively supporting the initiative.

Being able to witness your energy and dedication, and knowing that you are a mother of a 4-year-old daughter, what is your approach to work-life balance?

Honestly, work-life balance is one of the few things I struggle to get under control. I take work home with me, I go to sleep thinking about it and I am waking up with it. On the top of that I share an office with my husband, so our private life and our work life are fairly blended to a certain extent. And even when we find a moment only for ourselves, we manage to come up with new, interesting ideas, especially in the evening while having a bath or before falling asleep. Even though recently I feel like I am so exhausted I fall asleep even before we say goodnightJ. Mia was 8 months old when I founded the association. I worked during a part of a day she was sleeping, and then overnight. Now, she goes to a preschool but I am trying my best to spend some quality time with her whenever I can. Moreover, we devote Fridays only to ourselves, spending some good chunk of time together.

What are your final words for Czech and Slovak Leaders readers?

The way to sustainability is in our common interest. SDGs bring the most solid plan to date for new companies to find opportunities regarding the challenges of a modern society. And we are not talking charity here. Effective inclusion of sustainability into a business strategy requires a serious commitment. Cooperation is also vital. Companies must understand that cooperation – even with their competitors – is necessary, followed by common investment into common goals, facing systemic challenges. As one African proverb says: If you want to go fast, go alone; if you want to go far, go together.

By Linda Štucbartová

UN Global Compact is the world’s largest corporate sustainability initiative. It has 13 000 signatories, 160 countries and 85 local networks. It encourages companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advances societal goals. Since 2015, the Global Compact Network Czech Republic has been active in engaging both local firms and subsidiaries of foreign corporations engaged in the Global Compact with respect to implementation of of the ten principles, while also creating opportunities for sharing knowledge, learning, collective action and partnership. 

“The Czech Army has not been sufficiently financed and has been pushed to the sidelines.”

Martin Stropnický, Minister of Defence of the Czech Republic

It was my pleasure to interview for the Czech and Slovak Leaders Magazines one of the most favourite Czech politicians. Besides being Minister of Defence, Martin Stropnický is also known and popular as an actor, director, writer, and singer. Mr. Stropnický studied at the Theatre Faculty of the Academy of Performing Arts in Prague and at the Diplomatic Academy in Vienna. From 1980 until 1990 he worked at the Prague Municipal Theatres and at the Vinohrady Theatre. In 1990, he joined the Ministry of Foreign Affairs and served as Czech Ambassador in Portugal and in Italy at the Holy See. In 1998, he was a member of the caretaker government as Minister of Culture. In 2002, he received the highest Czech theatre award for the role of Howard Katz. From 2003 to 2012, he held the position of Artistic Director of the Vinohrady Theatre. In 2013 he was elected MP in the Czech Parliament and since January 2014 he has been Minister of Defense of the Czech Republic.

Mr. Stropnický, is Europe and the Czech Republic still a safe place? Where do you personally see the biggest threats and how can citizens cope with the situation?

I do not like to terrify people for no reason and therefore my answer will be simple and clear – yes, the Czech Republic and Europe represent a safe place. But we have to be careful and safeguard our democracy and safety more. We all see what is going on around us. After decades of a relatively calm period and having the feeling that nothing can happen, we have now embarked upon a new situation. The security environment has profoundly changed with the annexation of Crimea, hybrid war in East Ukraine, expansion of the Islamic State and terrorist attacks in Europe. We are facing new challenges to which we must find common answers within the EU and NATO. If we want to maintain European space a stable one and economic area in the future, we all need to pull together and solve crises at the place of their origin. Problems cannot be resolved by passivity.

It seems that crisis times for society mean good times for the army. Budget and the number of both active soldiers and soldiers in reserve are growing. How can the Czech Army use this opportunity? And can some positives be found for the society as a whole?

The Czech Army has not been sufficiently financed and has been pushed to the sidelines. This resulted in a hidden debt of 100 bn. CZK (approx. 3.7 bn. EUR) and low numbers of professional soldiers and active reserve soldiers. Now, we are trying to change it. We have managed to secure a higher budget, we have started new modernisation projects, every year we hire two thousand professional soldiers, and we have created more attractive conditions for active reserve soldiers as we would like to increase the numbers from 1,300 to 5,000. All of our activities are designed to ensure a safe environment and maximum protection for the citizens of our country. Many people perceive it the same way. If there is something positive regarding the situation, then it is the patriotism of people and their interest in things happening.

One of your goals was for the Army to become again a trustworthy partner of entrepreneurs, you support the Czech defence industry and you stopped using agents for purchasing. Have you already achieved some specific results?

We have the outline for our defence budget for the next two years and key concept documents that represent a basis for mutual prosperous cooperation. Overall, the Army has a clearly defined plan what to buy and when and the outline for the budget serves as a guarantee that there is a budget secured for the planned acquisition. The domestic industry has the information as what requirements to prepare for in time and as a result the mutual communication has improved. We continuously work on improving acquisition processes. We are dismantling the historic legacy which had a wrong acquisition setup. Companies could see some positive results by the end of this year. Whenever it is possible, we will support multiple-year contracts. These will be concluded with domestic manufacturers and important investment contracts will be concluded for the life cycle of the material required. Overall, in more than two years, we will have done substantial amount of work that will benefit both parties. The common denominator must always be the defence capability of our state.

The Army of the Czech Republic has always belonged to institutions that have managed to maintain high level of credibility, despite adverse conditions. How do you explain this phenomenon and what are the areas that you would like to stress in future development of the Army?

According to the polls, 72 % of the public trusts the Army, which is the highest level from all state institutions. Being the Minister of Defence, I take pride and get motivation for further work. In two and half years in the office, I have visited most of the army units as well as soldiers serving in missions abroad. I witnessed that men and women in uniforms perform extraordinary tasks and so the credibility is well deserved.

Roberta Pinotti, Minister of Defence of Italy and Martin Stropnický, Minister of Defence of the Czech Republic at his state visit of Italy

Periods in your career would easily suffice for someone’s lifetime. You had a remarkable career as an actor and director, then in diplomacy and nowadays in politics. What were the lessons learned from each distinct period? Do you still have any unfulfilled plans or dreams? And is there any environment that you miss?

I enjoy changing environments and professions, I enjoy learning and overcoming obstacles. It is true that from time to time I think that it is too much and I would deserve a bit of quiet time. My entry into a political life was totally spontaneous. As a citizen, I felt that the situation in the Czech Republic had become unbearable. I was very satisfied in my personal and professional life, but the public space before 2013 elections started to feel like the period of normalisation (1980s in communist Czechoslovakia – LŠ comment). Perhaps today such words might sound too daring and some smart aleck might laugh at me but I truly entered politics feeling the citizen’s duty.

You are often characterised as extremely committed to work. Is it possible to maintain work-life balance in top politics? And to what extent does the fact that politicians often sacrifice family and free time determine the decision to enter active politics in the first place?

Commitment is just a sign of inner energy that each one of us possesses. It is just the way I am, it is not any special merit. However, as I am getting older, I think that I should slow down. I do not like when someone prides on their productivity. And I totally dislike stories about someone who spends weekends working, on weekdays works from six in the morning until nine in the evening and in the evenings he is angry since his family distracts him from studying papers during dinner time. Someone who cannot have a rest and someone who does not have another dimension, cannot be productive anyway. You cannot save the world by “yielding up the ghost”.

You seem to be a consensual leader. Is it due to your previous experience with acting or diplomacy? And how would you characterise a successful leader?

I cannot say whether I am consensual, I cannot judge myself. Politics is a permanent conflict of ideas. The diversity of ideas is very precious. But the ability to connect the differences from discussion into a functional and prosperous compromise is even more precious. In order to do so, you need to have self-control and patience. You need to have self-confidence without being patronising. And you must not be afraid. No politician will ever admit this but most crises and conflicts originate due to fear. And fear has various causes. But this would be a long story…

It seems to me that not enough of attention is paid to the issue of women in the army…

I do not think so. Compared to the police, women are respected part of the army. From approximately twenty thousand soldiers, about 15 % are women. In this aspect, we rank in the first half of the NATO countries. We have several high ranking officials such as L-159 CASA airplane pilots or women soldiers participating in foreign missions. I somewhat carefully can say that the only thing we are missing is the female in the ranks of the general. But that is only a matter of time.

What are your final words for Czech and Slovak Leaders readers?

Leaders should not forget their roots. They should not think only about themselves getting re-elected. They should be educated, experienced and balanced. They should have the courage to promote the important things in which they believe. If not, then there is a risk that a leader will become a clown.

By Linda Štucbartová

Photo: Archive

Exclusive Interview On Digital Transformation And Its Impact On Businesses And Society

Having the opportunity to interview Mr. Stefan Höchbauer gave me not only a positive insight into the situation on digital transformation in the Czech Republic and its neighboring markets in Austria and Germany, but also an impulse to look at the technology from another perspective. More than ever, new technologies are becoming drivers of the business model change. The revolutionary examples of Airbnb and Uber show us how small players can grow into global ones and on the other hand, how the global ones might become smaller ones or disappear completely. In order to succeed, the IT needs to become integral part of the business to profit from the successful and long-term sustainable development.

INSPIRATION FROM SAP – DESIGN THINKING

A Design Methodology

Basically, Design Thinking is a design methodology, which differs from traditional design approaches in specific ways. For example, it is characterised as more creative and user-centered than many traditional design approaches.

A Problem-Solving Approach or Process

Design Thinking can be regarded as a problem-solving method or a process for the resolution of problems. As a solution-based approach to solving problems, Design Thinking is particularly useful for addressing the so-called “wicked” problems. Wicked means that they are ill-defined or tricky. For ill-defined problems, both the problem and the solution are unknown at the outset of the problem-solving process. Even when the general direction of the problem may be clear, considerable time and effort is spent on clarifying the requirements. Thus, in Design Thinking, a large part of the problem-solving activity is comprised of defining and shaping the problem. Much like any other problem solving process, Design Thinking consists of a number of stages or phases, which differ slightly between various Design Thinking proponents.

An Approach to Encourage Creativity

Unlike analytical thinking, which is associated with the “breaking down” of ideas, Design Thinking is a creative process based on the “building up” of ideas. While analytical approaches focus on narrowing the design choices, Design Thinking focuses on going broad, at least during the early stages of the process. In Design Thinking, designers do not make any early judgments about the quality of ideas. As a result, this minimises the fear of failure and maximises input and participation in the ideation (brainstorming) and prototype phases. “Outside the box thinking”, also called “wild ideas”, is encouraged in the earlier process stages, since this style of thinking is believed to lead to creative solutions that would not have emerged otherwise.

A User-Centered Approach That Brings Design into the Business World

Design Thinking is seen as a way to apply design methodologies to any of life situations. It is often used to explore and define business problems and to define products and services. In other words, Design Thinking brings the design approach into the business world. As a style of thinking, it combines empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality and feedback to analyze and fit solutions to the context – All this helps derive a solution that meets user needs and at the same time generates revenue, that is, drives business success.

Mr. Höchbauer, what are the main business model changes and disruption trends that SAP helps its customers to address?

The topic of digital transformation or business transformation as discussed nowadays is driven by three factors. The first one is represented by surprising competitors that have emerged and now are challenging many established players in traditional industries. Several years ago, it would seem odd to consider that BMW or VW would face competition from Google and its autonomous driving, as Google now has all the data relevant and needed. Similar disruptions are happening elsewhere: one of the biggest taxi providers Uber does not own cars, likewise Airbnb achieved its success without owning one single hotel bed. More and more, the traditional companies in traditional industries need to start thinking about new ways how to engage with customers.

The second factor is linked to the Internet of Things – taking into consideration all devices that are connected to the internet and that will be connected to the internet. According to studies, by 2020 there will be about 50 billion devices connected to the internet. We tend to think mainly about mobile phones, but there are many other devices and sensors connected, and generating enormous overall volume of data. Just imagine immense opportunity for businesses arising from combining data from devices together with corporate data, which create the backbone of the enterprise, and then enriched with the data from the social media. Now the next step comes and that is what to do with the data and how to combine them with analytics. We present to our customers the example of Digital Boardroom as the place where all information about different parts of the enterprise is available and so it enables not only access to data in real time but also decision making according to complex evaluation of the current status of an organisation as well as enhancing communication across various departments. Besides effective decision making, this approach also enables many new opportunities how to interact with customers.

The third dimension of disruption trends comes with next generation, the so-called millennials or also internet generation. They have totally different ideas about how to consume goods and services. I always present the example of my 14 year old son. He likes cars, but he has already made up his mind that he does not want to own a car in the future. He wants to have a flexibility and use it according to his needs, so he thinks about sharing cars with friends and changing models as he likes. And now this new approach to consumption is starting to be reflected in the whole automotive industry.

Having heard all this, now I understand that your statement: “In order to win in the new economy, you must digitize or become irrelevant”, should not be considered an overstatement.

To illustrate all of the changes mentioned above on one specific example, I can give you an insight from my recent discussion with a car rental company, an industry that few would consider particularly innovative. Generally, we would think the business is about maximum possible utilisation of the cars, being at the right place at the right time. However, facing the challenges, there is a need to come up with new types of shared and mobile services for their customers. Potentially, SAP as a corporate customer, will not have one company car per employee but rather service level providing a car at disposal according to needs. So from owning or renting a car, we are turning to consuming either miles or hours or any other flexible arrangement.

Individual SAP employee might thus profit from various cars for different occasions. Smaller car easy to park when driving in a city, a family car when going to the seaside for summer vacations or an offroad when going for a skiing weekend. Or perhaps would he or she like to try a convertible throughout summer? Expanding on this mobile cart, let me describe a few services that could be interesting from the user’s point of view. Just by entering the car and connecting to the GPS, there would be a welcome and the navigation system would be automatically selecting the optimal journey to the next meeting. If I go to the petrol station and I refuel, the bill would be automatically added to the right expense company account. No more diffcult and manual handling of receipts and bills into a system. By the way, this is already possible thanks to SAP technology called Concur.

So this was one example that for changing business models you need flexible and reliable, rock solid IT infrastructure with data, applications and solutions and building on these, you come up with new services and ways to engage with your customer to serve their needs better.

Digitalization is truly affecting each and every industry and each and every geography. The adoption might be different if you compare America and Western Europe to Russia and CIS but it is omnipresent. Sometimes, it comes under headline of business transformation but the ultimate aim as to how best adapt for future market is always the same.

Stefan Höchbauer, SAP

For a long time, SAP has been associated primarily with large corporations. In reality, 80% of your customers are SMEs. In Germany, the SMEs have been traditionally considered backbone of economy, but in the Czech Republic, SMEs have been in an inferior position with regards to access to funding and innovation, when compared to multinationals. Has the situation changed?

In SAP we have the same customer base in each country where we operate. What might differ, is the definition of the SME as such, with regards to the revenue or number of employees. But the principle how we engage with SMEs, what products and solutions we offer and how we engage with them, stays the same. As you pointed out, SMEs are also a backbone of business for us. Look at our product and portfolio and you find a range scaling from small to large enterprises. In some areas the offer is the same, in some areas there are special products developed in cooperation with our partners, based on our technology and ready to solve specific solutions in particular segments.

Three particular segments – finance, media and production – have been discussed at SAP Forum held in Prague in June. Finance and production are often discussed, but what was the reason to include media?

As I mentioned, digital and business transformation is relevant for each and every industry. Some of the industries might be more adaptive than others. With media and in particular social media, the question of making use of data available becomes imminent which brings us back to the solutions we offer. This was confirmed in the keynote speech of Mr. Petr Dvořák, CEO of Czech Television, discussing new trends in TV time consumption and the effect on the transforming world of media as such.

SAP is active in both, public sector and private sector. How is the public sector, comparing to the private one, interested in digital transformation? Are there any differences, can you give an example?

It is interesting to note that with regards to the digital transformation, the often mentioned public-private sector divide is not relevant. There might be some slight concerns with regards to cloud solutions, but overall, the solutions and the responses are the same. Let us take the example of growing pressure from citizens with regards to the need of more transparency and budget spending or the pressure to be more flexible in handling administrative agenda filing on the documents and paperwork. The topic of efficient data use and data sharing can be extended to health care where I see a great advantage and potential. The potential of connectivity was demonstrated in one study done by the Heidelberg University Hospital which carried out digitizing cervical cancer screening in Kenya, in a process that helped to prevent data loss and duplication. And one last positive remark regarding adoption and readiness, I am pleased to see that the level of discussion is almost comparable between Germany, Austria and the Czech Republic.

So far, we have talked about transforming businesses and technologies. Now, let us talk about people. What is your view and approach to leadership at SAP in times of transformation?

In SAP, we make sure we have the people at the right positions. We embrace the notion of all inclusive diversity, in terms of gender, age, nationalities and last but not least even different physical abilities. I am so proud not only about my diverse team and particularly about the high number of talented women managers in executive positions throughout the region.

We walk the talk on disruption and so we introduced the methodology called design thinking which is a smart way of brainstorming and engaging with our customers. But we also use it internally. We talk about potential disruptive ideas, topics, trends and influences and how to link them to the opportunities our technology enables. Therefore, the employees need to be open to learning and to adapt fast. We also experienced our transformation from turning from an enterprise resource planning system company into a cloud company based on rock solid technology SAP HANA. This way, we are able to address much bigger market potential, in terms of different industries, lines of business, different buying centers etc. Our experts are trained to be always the most relevant source for their customers as potential consultants on future disruptive trends in a particular industry or business. We invest in training, education, coaching and we are aware that this is an on-going and never ending process.

By Linda Štucbartová