On Viennese Tradition, Legacy and Journey to Modernity

Preparing for an interview with Rupert Simoner, CEO Vienna House (formerly Vienna International), made me reflect on the past and brought my mind back to the history of the Austro-Hungarian Empire when Vienna used to be the second largest Czech city in the Monarchy. It also made me reflect on the proximity and closeness of the Czechs and Austrians that I have experienced while working for the Diplomatic Academy Prague and closely co-operating with the Diplomatic Academy in Vienna.  However, after I became familiar with the current project of rebranding, characterised by the outburst of creativity and joyful communication, I realised there is no space for the sentiment of the past but on the contrary, time for enjoyment and zest for life. I felt quite invigorated discussing strategy, values, diversity and energy.

It is my pleasure to introduce you to Rupert Simoner, CEO, Vienna House.

Vienna International Hotelmanagement AG – in 2016 repositioned as Vienna House – looks back at more than 26 years of success, during which it has focused on building and expanding its portfolio of hotels in the three to five star segment. CEO Rupert Simoner is proud of the group and the vast hotel portfolio it has built up during its 26 years of existence. Currently, the group consists of 38 hotels, six in Czech Republic, four hotel lines and 2,200 employees operating in ten countries: from France to Russia, from Poland to Austria. They include the top tourist destinations such as Berlin, Prague, Pilsen, Carlsbad, Bucharest, Coburg, Krakow, Lodz, Munich, Neckarsulm, Trier, Disneyland® Paris and Bratislava.

Mr. Simoner, the current rebranding seems like a remarkable major change. What is the reason behind the change of Vienna International, in Prague perceived as an established brand, to Vienna House?

Currently, the hotel market is in a state of flux which is providing us with a number of challenges. Today’s guests have excellent access to the most up-to-date information. Their thinking and actions are global, local and mobile at the same time, and they have a steadily increasing selection of options to choose from.

At the same time, people’s understanding of value is undergoing a transformation. Traditional values such as luxury, in view of expensive status symbols, star categorisations and standards, are being replaced by personal, unique and, above all, one-of-a-kind experiences. People’s self-image has become more value-conscious than status-oriented.

Following the trend reports of the hotel industry and implementing these with a healthy dose of common sense gives rise to the following formula – living brand values together with acting from the guest’s perspective while keeping it simple.

As such, we have had to change the areas with regards to our corporate culture, restructure corporate divisions, reposition ourselves by developing and communicating a clear new brand architecture and last but not least redesign all hotel divisions and realign standards to guests’ requirements.

Hotel Angelo Prague

I see the statement “Values need to make sense from the inside out and be easy to understand” being very fundamental to any company. Nevertheless, from my experience working with teams, only few employees can recite values and even smaller amount can explain them. How will you make sure that your values will be thriving not surviving?

A new corporate culture only works when it is accepted and lived from the inside. All employees were informed about the development steps in the beginning and have been kept up-to-date with regular news from myself and my management board colleagues, hotel directors and direct management in open feedback discussions. National and international workshops provided additional support for the process.

It is essential that values make sense from the inside out, be easy to understand and easily implemented into our working life which means that they must be lived from above. We took this decision together and we continue to work on what this means for each individual.

We developed a “roadmap” for our new self-image of Vienna House which translates our core values into daily actions and in a simple and understandable way explains what optimal guest feedback, employee conduct, work environment and management understanding look like at Vienna House.

When rebranding takes place, it is often the case that regions are lagging behind headquarters but Prague is not that far from Vienna. What specific plans do you have for the Czech Republic? What can clients look forward to?

We are a hotel group and hotels are the heart of our business no matter what the location is. All our Czech hotels will be rebranded, so you will see Vienna House Diplomat, andel’s by Vienna Prague, angelo by Vienna House Prague, Vienna House Easy Chopin Prague, angelo by Vienna House Pilsen and Vienna House Dvorak Karlovy Vary.

The most significant changes will be applied step by step and affect the following areas.  Hotel staff in new uniforms will have very broad freedom of action. Open lobby with a living-room or lounge atmosphere will allow for the work-life blend trend since this is where business and leisure meet so you will see co-working areas, lounge corners, an integrated bar and a free-standing reception.

Current trends in mobility will be facilitated by bicycle stations, electric car charging points and car-pool stations.

The use of new techniques and technologies true to the motto of “simple and intelligent”, such as charging points on all tables, USB ports in all rooms and web. Last but not least, the trend of (g)localisation will be seen in new individual bar and restaurant concepts that will serve also local specialities matching the region were the hotel is located.

Hotel Dvořák Carlsbad

I was surprised about the digital shift and the impact that it makes on the hotel industry.  You have already mentioned several services making use of ICT, such as mobile check-in and check-out, mobile concierge services, USB ports, free high-speed Wi-Fi and other services.  Besides digitalisation, are there any other trends in the hotel industry that you see emerging?

There are several micro trends which of course affect lifestyle movements, such as sustainability and corporate social responsibility. In some areas – especially in the service and hotel industry, we can observe that people wish to have personal contacts instead of machines.

Further, there is a trend to concentrate on simple but quality things. More and more European travellers are sensitive to the environmental issues and therefore they are trying to live and also travel in an eco-friendly way.

And one attitude can be seen through many levels: buying moments instead of buying things is getting more and more important in our world as everything happens faster and faster.

The next concept we are both passionate about is diversity. You understand it in quite broad definition, not only acknowledging the diversity of the different hotels with all their regional tastes and peculiarities but also diversity of staff and members. How do you deal with diversity of talent and who are your target employees? Many companies now try to target women or young people. What is your approach?

Hospitality is about exploring, being curious and it is about people. It is a great place for people where they grow and shine and where they feel the whole world belongs to them. On one hand, Vienna House offers a niche between small private hotels and large – perhaps more anonymous – chain hotels. This may provide an opportunity for many. We offer international career paths our hotels and broad experience opportunities in our hotels. On the other hand, we have established ourselves as personal and direct. Employees can be themselves, they don’t have to pretend anything and feel like they are wearing a mask. We offer proper training programmes, promotions and a personal work environment.

Thanks to the Vienna House Academy, the HR division provides extensive new training and development programmes for all company employees. These include: Executive Development 360°, cooperation with 20 universities in 12 countries, a global departmental trainer structure and introduction of the Victor Leadership Development Programme for specifically developing young leaders.

Breakfast Buffet

I have valued? (aluded to, spoken about?) to the Austro-Hungarian Empire and its legacy several times. According to experts on Czech-Austrian relations, both nations tend to be quite similar and that might be irritating. How do you personally view Czech-Austrian current political, business and interpersonal relations?

Why irritating? As you mentioned, we share big parts of history, we have many things in common. The same is true about food. I love Czech beer and so do many Austrians. The Czechs as well as the Austrians are very hospitable. So on the cultural level there is a huge similarity that makes approaching both nations easy. Moreover, this good common understanding affects political, business as well as interpersonal Czech-Austrian relations in a positive way.

Mr. Simoner, you are always smiling, are in a good mood and positive. To me, you are a perfect example of the new approach to work-life blend rather than work-time management. Can you share some secrets of time and energy management with us?

Work-life balance is important to me and so I also make sure that my team members have time for their families, friends, hobbies and sports. I strongly believe that people are much more efficient if they have also a private life. Therefore, I trust them and I can fully rely on my employees. This makes my time and energy management possible.

Your creative campaign has inspired my imagination and made me think outside the box. Instead of the typical question what your final words for Czech and Slovak Leaders are, I will ask if there is a question that you wanted to answer but no journalist has ever asked?

I can’t think of one single questions I was never asked – but I like your last question very much.

By Linda Štucbartová

“Flying the African flag in Prague.”

In this first interview in our Around Africa Series, Martha Ronke Ayorinde, a Nigerian by origin but who now describes herself as Afro-Czech, talks about her life and times in the Czech Republic and how she is contributing to the economic development of the country.

How old are you?

I am 43 years old

When did you arrive in the Czech Republic and what brought you here?

I came here in 2000. The reason that brought me here was to stay with my mother, Her Excellency Julie Joke Ayorinde, who was then the Nigerian Ambassador to the Czech Republic. When her term ended as ambassador, I decided to stay here, on my own.

How did you manage to adjust to your new environment without speaking the Czech language in the beginning, and what is one of your most unforgettable first impressions?

Without speaking the Czech language, it was very difficult for me in the beginning as everything was in Czech. But once I made up my mind to stay, I prepared myself to face the challenge and adapt quickly. One of the funniest and embarrassing moments still on my mind was when I started living here I did not know much about Czech cuisine so it was difficult for me to shop and cook. In trying to find a way out, I came to like a particular Czech bread because the taste was similar to a bread that I liked back in Nigeria. Fortunately, close to our residence in Prague was a shop where I used to buy this bread.

One day I went to the shop and the bread was not at the usual place on the shelf. In Czech the bread is called babovka, but while enquiring from the shopkeeper, I mispronounced it and said I wanted babicka which in Czech means grandma. Of course he did not understand me until I went out to call the driver of my mother who was a Czech to come and explain what I wanted. In the end we all laughed over it but it was a good lesson and it is still on my mind to this day.

What is your profession or occupation and are you working in your field of trade or studies or doing something different?

I am a trained beautician but I am now working as a hairdresser and a consultant for hair and make-up.

Do you feel at home here in the Czech Republic and do you still have links with family and friends in your country of origin?

Please remember I arrived in my youthful years so I grew up partly here. Now I have a business here and have some peace and stability. My first child, a 3-year-old girl, was born here. Yes I feel at home here. I see the Czech Republic as my home and Nigeria as my home too. Yes I still have good contacts with my family and some friends back home in Nigeria.

In what way through your work are you contributing to the socio-cultural and economic development of the Czech Republic and if possible your country of origin?

I have managed to set up this business, Mathas Inspiration and Hairdressing Saloon, and running it for more than 10 years now. The saloon gives me work and I also offer job opportunity and training to others. By paying taxes for myself and the business, and for the others who work for me, I am contributing to the economic development of this country. I provide employment opportunities to some Africans and that helps with their integration into the Czech society, and not only Africans because my accountant for example is a Czech. I guess this is something that most Africans living outside the continent for a long time have to deal, and come to terms, with.

I am also contributing to the enrichment of the multicultural environment with an ethnic business that caters for both Africans and Czechs and any other person who needs it. For example, I play a useful role in providing counselling and services to parents and children from bi-racial families as to which cosmetics are suitable for them. Yes, I also have a hairdressing saloon in Nigeria but that is very small compared to what I have in Prague.

How do you see yourself – an African, Afro-Czech or a Czech?

Well my family and friends back home say that my mentality and way of doing things now have become like that of a Czech. My Czech friends with me here in many instances also see a real African in me. In that context, I can conveniently describe myself as an Afro-Czech.

“Even though some people may wish so, there is no danger the European Union would fall apart.”

According to Tomáš Prouza, the Czech Republic is a reliable and predictable member of the European Union. How does it make his work as the main liaison between the Czech government and Brussels easier? How, in his opinion, has Europe united regarding the migration crisis and what did the Czech Republic achieve in the EU within the last year? In the interview for Czech & Slovak Leaders, the State Secretary for European Affairs also comments on the date of possible adoption of a single European currency by the Czech Republic.

Dear Mr Prouza, on your webpage you present yourself as a “European, economist, and a bit different official”. Why is that?

The word “official” often evokes rigidness, lengthy procedures, and stereotypes. Although I am an official formally, I do not identify with such negative view. Especially in European politics I have to be really dynamic, I must be able to react to quick changes occurring in Europe; I need to keep contact with “Brussels” all the time, with my colleagues in other EU member states as well as the Czech Republic leaders.

Which apparently is happening…

Important part of my work is increasing awareness of the European Union and its significance for our country among the Czechs. That was underestimated by previous governments and since January 2014 when I joined the Office of Government, it has been my task to change this situation radically. Which you can´t do if people consider you a non-action and boring person sitting behind his desk.

What exactly does your work involve on a daily basis?

First of all, my task is to give the government recommendations regarding our strategy in European affairs. It means what major issues we should focus on in our European policy, what and how we should promote, and which direction we want to proceed. I am also responsible for coordinating Czech positions towards European institutions, I have to regularly communicate with my colleagues from other member states, which also means personal meetings as well and so a lot of travelling. However, frequent contacts have been the basis for successful Czech European policy in the last two years; our partners show us much more respect if we explain our position in person.

Can you give us some examples, please?

Regular contact helps the Czech Republic create coalitions thanks to which other member states support our plans. I would like to add that besides this diplomatic role, an important part of my work is communication on European issues to the public and a regular dialogue with our Parliament and Czech members of the European Parliament.

You mentioned regular contact. Do you mind that work of the State Secretary for European Affairs is not much discussed in media?

When it comes to the media, it of course matters what issues are currently popular. If domestic politics is discussed, Europe is put aside, which I personally feel sorry about as it is an evidence of the fact that our journalistic community still lacks perception of the scale of influence that EU affairs have on a domestic scene. When I took the position of the State Secretary for European Affairs, two months later we celebrated 10 years in the EU, which meant a big interest of journalists in interviews, conferences, and various discussion meetings around the country. Back then, I could not say that the media do not pay enough attention to the European agenda and my work. In the summer of 2014, I spent a lot of media time on explaining sanctions against Russia. For the last six months, a topic number one has been migration and refugee crisis. The issue which I am dealing with 24 hours a day, 7 days a week in my office. European issues get more and more publicity, which is important.

What is other member states´ perception of the Czech approach to the migration crisis?

Due to the fact that Brussels was focusing mainly on the so-called relocation system at the beginning of the migration crisis, our position was not understood by some member states. Now, all-European approach is progressing in the same direction that the Czechs have been advocating since the very beginning – solving migration crisis at its roots and control of external Schengen borders.

What, in your opinion, makes the European Union most united these days?

What really has united European states in the course of the last months is their common reaction to tragic events in Paris last November. All member states condemned this unprecedented display of hatred and violence. Parisian attacks were directed at traditional European values and wanted to make them weaker; however, it has paradoxically united the old continent and we all started working on securing safer Europe in the quickest and most efficient way.

What on the other hand makes Europe most divided?

The European Union consists of sovereign states and in a democratic society it is natural that priorities differ; there are different opinions and views. I don´t think there is a topic that would absolutely divide the Union; there are topics which we view differently from our partners, however this does not bring any fatal consequences to the European Union as a whole. Even though some people may wish so, there is no danger the European Union would fall apart.

Are we able as a member state to keep up with changes in Europe? Are we reliable?

In the past, the image of the Czech Republic was one of a troublemaker obstructing progress in major European issues. However, this changed two years ago and the Czechs are a reliable and predictable member of the European Union now. This I am repeatedly assured about by our partners abroad. We are able to react to changes quickly, which was visible during migration crisis last time, when we repeatedly manifested our solidarity by accepting refugees in need, by increasing material and expert aid. However, at the same time, we clearly voiced up what is important for us – and now our opinion is being adopted by the whole Europe.

Does the Czech Republic have a clear idea of who should represent the main face of its foreign policy, and I don´t mean constitutionally?

Not looking at that from the point of view of the constitution, this should be a person with adequate knowledge and respect. Czech foreign policy is determined by the government. Responsibility goes to the Ministry of Foreign Affairs, however in top meetings with foreign partners the main role is played by Prime Minister. And let me tell you that the cooperation with the Ministry of Foreign Affairs is fantastic. Our great advantage is that we have an active Chairman of the Chamber of Deputies since the role of parliamentarian diplomacy has been becoming stronger and stronger.

What would you like to mention as the main success of Czech politics in Brussels last year?

I don´t think it was just one success. I consider an important achievement for example adoption of all operational programmes, which means the Czech Republic is able to draw approximately 644 billion Czech Crowns from the European budget in a new programming period of 2014-2020. Following the ineffective drawing of European funds in past years, the situation has finally changed.

As far as you keep saying, it may also be the issue of migration and its solution.

After an unconvincing start it became clear later that a really effective way is to solve causes, not results. European leaders agreed on the approach that the Czech Republic has been supporting since the very beginning – protection of external Schengen borders without which we can never succeed in dealing with migration crisis. Towards the end of the last year, the European Commission also started their work on a draft of a single European border guard, i.e. a system which the Czech Prime Minister has been repeatedly talking about in the course of the last months. It is obvious that Czech voice is being heard in Europe.

Has there been any failure?

I don´t see any major failure in Europe. We could definitely get much better in explaining European affairs at home since the stereotypes inside some people´s heads persist, especially thanks to the support from many populists and half-forgotten politicians whose last chance is a “scarecrow of Brussels”.

Ten years ago you were the first ever national coordinator for Euro adoption in the CR. So, let me ask a clear question – will we ever have Euro in the Czech Republic at all?

Of course we will, although the decision about the entry is unfortunately not going to come within this election term. Nevertheless, the government makes efforts to prepare everything so that the next cabinet can decide about Euro adoption quickly and does not have to work on technical aspects anymore. Adoption of Euro will bring significant economic advantages to the Czech Republic; therefore we should act as quickly as possible.

Is the Czech Republic now building on the grounds you had set up in your position? What has actually been the biggest development for the ten years?

Previously, most of our governments were not in favour of our country´s entry into the Euro zone, which reflected their position towards European integration issues in general. Only this government stated in its programme declaration the purpose to re-evaluate existing standpoints towards monetary integration and to prepare the CR for joining the Euro zone, which is really happening now. So, the system which I had built up long ago starts coming to live again.

What do you feel is the main advantage of a single European currency in 2016?

Finalising the process of the Czech economy integration into European monetary structures. The Czech Republic will be able to fully participate in the formation of the economic and monetary union. All that will have a positive impact on our national economic policy because the key features of the system are enquiries of medium-term balanced public budgets and structural reforms supporting long-term economic growth. Irreversible fixing of currency will bring increased stability to the financial sector and decreased risks of monetary turbulences. Sharp exchange rate fluctuations represent a great risk for a small open economy such as ours. Eliminating exchange rate risk towards Euro zone countries, which are the most important trade partners for the Czech Republic, will bring profit especially to our companies. These advantages will become evident in the decrease of transaction and security costs as well as decrease of investment uncertainty. The household sector will profit from higher price transparency which stimulates competition.

What do you think is the main disadvantage of Euro – after the series of financial injections to some Euro zone countries?

From the point of view of the Czech Republic the main risks are connected especially to the reaction of economy to economic disruptions. For economic policy of the Czech Republic, the loss of independent monetary policy would mean loss of important tools which are able to help reduce negative impacts arising from different domestic and foreign economic development, and thus facilitate economic convergence. In connection to the recent development in the Euro zone, the system, created in the frames of the Euro zone as a help to the countries in need, i.e. providing so-called financial injections, is also essential. Of course, if the Czech Republic were a Euro zone member, it would have to participate in such system in a solidary way.

What benefits will a bank union bring to the Czech Republic?

Right now, the office of the government is analysing experience of other member countries with the bank union. I consider the main advantage of the bank union a possibility to become part of a stable system headed by a respected institution such as the European Central Bank. In addition, it is a possibility to influence creation of supervisory standards for financial institutions all over Europe. Entering the bank union would also mean our participation in a decision process of major credit institutions of the Euro zone as well as a possibility to access the funds from the Single Fund used for bank crises solutions.

Server Peníze.cz, consulting company Partners … you left your legacy in many places. Are you planning to return to a private sector in the future, where you had been successful?

I think it is important that I know life in both private as well as public sector. It gives me the ability to focus on important issues and be clear about what helps Czech companies and what on the contrary slows them down. Currently, I am not planning any change but I am open to anything interesting life will bring me next.

During the world financial crisis you worked for the World Bank. Have the priorities of the bank changed due to the crisis?

Quite substantially. First, now the World Bank is focusing much more on issues such as financial inclusion and high-quality financial market supervision but most importantly, the World Bank started to intensify focus on advisory activities and economic reforms support.

It has been more than ten years since the bank moved the Czech Republic from the group of developing countries among those of world economies. Have we succeeded?

For the time being yes, but let me use the words of a classic – we have to try harder. Bringing our economy closer to developed European economies stopped in past years as a result of restrictive economic policy of previous governments, the digital economy fast train is speeding away from us and we don´t know how to profit from smart Czech brains. Above all, however, we are not able to explain to people how well they are – economy is growing quickly, unemployment is at its minimum but people don´t seem to see this.

Mr Prouza, who do you consider a real leader?

Among current politicians it is Angela Merkel who at the time of crisis was able to give up her caution and bet everything on the fact that Germany is a country strong enough to be able to take care of millions of people fleeing from slaughter and terror. However, the highest inspiration for me is Franklin Delano Roosevelt. One of his quotes gives a very good definition of the way I perceive my task: It is not that we give more to those who already have a lot what would test our progress, but if we give enough to those who have too little.

Thank you.

By: editorial (jk)

“Our NGO is providing legal counseling to children whose rights were violated.”

Growing up in a children’s home inspired 27-year-old Michal Ďorď and his friends to start Vteřina poté. The NGO aims to raise the standards of quality of care for vulnerable children living in these institutions as well as persuade the government to focus more on prevention of institutionalization. Basically, Vteřina poté strives for a transformed and unified system of care for vulnerable children based on prevention of social exclusion of families at risk, family-based solutions for vulnerable children and high standards of quality of care for children in foster or residential care.

“Many of us felt unwanted, unloved, did not have any information about our background, our families or why we ended up in children’s homes,” says Ďorď who spent 17 years in the children’s home Frýdlant, “Some of us even experienced harassment, deprecation, while others experiences almost family-like treatment.”

Soon after forming the organization, Ďorď learned that there we much deeper systematic issues that have to be addressed, including that institutional care is prioritized to family-based solutions. Another issue is that the divided system of care is perpetuating social exclusion, while the prevention programs only get 10% of the budget designated for vulnerable children. At the same time institutional care gets over 50% of the budget.

Since it was founded in 2011, the organization has achieved several breakthroughs. Along with the Ministry of Education, Vteřina poté co-created Standards of Quality of Care for Children in Institutional Care. This will improve the quality of care in all care facilities. They have revised evaluation tools that the Czech School Inspection uses for monitoring institutional care facilities: children homes as well as other types of institutions are de iure school facilities. After criticizing the Czech School Inspection for only monitoring children’s homes once every 10 or 13 years, they hired 40 new school inspectors. Ďorď became the first person who had experienced institutional care to be named a member of the governmental Committee for the Rights of the Child.

When asked for specific examples of schools and areas where their organization had made a difference, Ďorď says that there are way too many examples. “Our NGO is providing legal counseling to children whose rights were violated,” Ďorď explains, “But we also visit children’s homes where we provide children with information about their rights, things they should consider before leaving care or information about ways of getting funding for their education.”

Recently, the organization helped a girl from a children’s home in Silesia. Thanks to information that they provided her with, she is now a student at a university. In her children’s home they have also started to build bridges between the children and the staff. By facilitating discussions about the issues both of these groups have with each other, they can brainstorm solutions and improve how things work within the institution.”We have secured funds which will allow us to do more such programs and training exercises in 2016,” says Ďorď.

“We’ve got a lot of positive feedback from the Minister of Labor and Social Affairs,  Michaela Marksová who closely cooperates with us,” says Ďorď. Marksová cooperates closely with Vteřina poté, Education and Justice ministries, government officials, experts and NGOs to help institutionalized children as well as training foster parents. “We also get negative feedback from some directors of children’s homes and a few parliamentary members who are against the reforms we promote,” explains Ďorď.

The organization has had several setbacks too. They had attempted to convince the Ministry of Labor and Social, Ministry of Education and Ministry of Health to cooperate on reform that could unify the system under one ministry. This would also change the way that money is distributed for the advantage of preventive services for families. This failed for may reasons according to  Ďorď, including the appointment of a new Minister of Education, a controversial new School Act was passed and several other complications. However they are working with Marksová who would like to make the reform.

When I asked Ďorď where he sees Vteřina poté in 5 years, he answered, “in advisory and working groups of ministries that deal with children’s right. I would like Vteřina to be an organization that comes first to mind to governmental and non-governmental organizations when vulnerable children’s rights are concerned.

Other than children’s issues, Ďorď is passionate about integration of marginalized groups, especially on housing and job markets and in education. His own family was a victim of discrimination in education and that significantly contributed to their socioeconomic standing which was used as a reason to separate our family and to put him into a children’s home. Besides that, Ďorď has been increasingly interested in system of care for unaccompanied minors who sometimes end up in correctional facilities for young criminals, where they do not

By Olena Kagui

Olena Kagui was born in Ukraine but has spent most of her life in the Czech Republic. Olena graduated from Anglo American University in the summer of 2014 with a Bachelor of Arts in International.

“Czech-Slovak relations are truly exceptional.”

Her Excellency Livia Klausová does not often give interviews, so I felt proud and honoured to be able to carry out an interview for this very special first issue, dedicated to Czech and Slovak relations. Having worked at the Diplomatic Academy, I know that interviewing an ambassador is a challenging task. Most questions cannot be answered directly and to other questions answers have to be deliberately vague. Nevertheless, I was looking forward to sending my questions to Mrs. Ambassador. Besides political issues, I was interested in topics related to issues of leadership and diversity. If I am to mention some characteristics that come to my mind with regards to Mrs. Ambassador, I personally perceive her as an authentic, modest and hard-working woman. A woman that managed to be the First Lady, mother and grandmother, while still professionally active and on top of that she has always found the time for her charity work. All this in a very unpretentious manner without the need to have the attention of the media.

Mrs. Livia Klausová, born in Bratislava, studied at the University of Economics in Prague as well as in Luxembourg and Amsterdam. She had worked as a research expert of the Economic Institute of the Czechoslovak Academy of Science and later as an executive secretary of the Czech Economic Society. In 2003-2013 she was the First Lady, and since December 2013 she has been serving as the Ambassador of the Czech Republic to the Slovak Republic. 

With regards to her charity activities, let me mention the Czech National Marrow Donors Registry, Life 90 Foundation and managing the Livia and Václav Klaus Foundation that mainly focuses on the support of education of many age groups, ranging from high school students to senior citizens, as well as assistance provided to children after they leave foster homes or children whose life has been impacted by serious car accidents. 

Your Excellency, it is undoubtedly true that Czech-Slovak relations are very special in their nature. However, some people who still remember Czechoslovakia as a unitary state, might consider the relations as a glass being rather half-empty than half-full. How do you perceive this phenomenon from Bratislava? 

Czech-Slovak relations are truly exceptional in their nature. And this is true not only about traditionally very close relations between the highest political representatives of both countries, those of governments, parliaments but the same is true when you consider relations between regions, towns, villages, institutions and universities. Relations within the realm of culture are also very intensive. In addition, we should not forget to mention family and friendly ties on the individual level between the two nations.

Slovakia will hold the Presidency of the Council of the European Union starting July 2016.  What are its main priorities and what kind of support it gets from the Czech Republic?

It is necessary to say that Slovakia has been very actively preparing for its historically first EU Presidency for a long time; the Presidency will start on July 1 2016 and last until the end of December 2016. As far as I know, the Slovak Republic is still working on its main political priorities. However, it is highly probable that these priorities will reflect the programme priorities of the so-called Presidency trios, that is three successive presidencies and the current trio is made up by the Netherlands, Slovakia and Malta. The programme of this Trio reflects three strategic priorities, including the issue of economic growth and employment, better protection of the EU citizens (for example in the social or health area), energy security, freedom and justice and last but not least the role of the Union as a strong global player. For sure, Slovakia will have to deal with the current migration crisis and will lead the Council of the EU during a very important period when many important and politically sensitive decisions will have to be made. And since you asked about the support from the Czech Republic, we naturally offer possible consultancy and exchange of experience from the times of Czech Presidency in the EU. However, the Presidency of the Council of the EU is first and foremost the responsibility of a given country that becomes for a half a year a “facilitator” of political and technical discussions and decision-making on various levels of the EU Council while being at the same responsible for communication with the other European Union Institutions. Presidency represents a big challenge and a big assessment. It is very specific in the manner that it forces the country to think more in the European terms and to a certain extent to leave behind national interests. I wish Slovakia handled its historically first EU Presidency in the best possible way.

Slovak friends perceive the Czech Republic as the leading model in many areas. In which areas can the Czech Republic learn from Slovakia?

I admit that I am not a fond of questions related to models. We can have certain models on the personal level, everyone has someone who played an important role in his or her life, was an inspiration or a good teacher and mentor. However, this cannot be replicated on the state level, since it would bring generalisation and simplification which lead to creating stereotypes. Moreover, it is not the role of the ambassador to judge or assess the hosting country. As far as the Czech Republic and Slovakia are concerned, one country passes over its experience to the other in the areas where it happens to be a step ahead and vice-versa.  Such mutuality only emphasises the special relations.

Can you compare the role of the First Lady and the Ambassador? To what extent do you have to play a certain role and to what extent can you be authentic?

Both First Lady and the Ambassador most of all represent a country. Both roles therefore come with a loss of privacy and a necessity to embrace many protocol rules. Both roles are similar in a sense that they entail not only many meetings with numerous people from different environments but also many administrative tasks. The main difference comes with the fact that the Ambassador is also responsible for managing the whole Embassy and a team of diplomatic and administrative staff. As far as “authenticity” is concerned in both roles, it is like in many other professions where an individual adds their own personal touch on top of a professional role.

You have become an ambassador, however you do not have the traditional support as expected from a spouse that plays a crucial role during many unofficial, yet supporting functions. Women have had traditionally low representation in diplomacy, which is also the regional trend in the Visegrad Four countries (Czech Republic, Slovakia, Poland and Hungary).  Does the low representation of women prove the fact that diplomacy is harder for women?

I see the often cited low representation of women in politics or diplomacy as a myth. I see a number of women in diplomacy and in local politics. However, the question why women do not enter the top politics is perhaps answered in your questions. It’s due to the fact that women lack support and a career conducive environment from their partners and husbands.

You were born in Slovakia, for a long time you have lived in the Czech Republic. Is there something that the Slovaks do not know about the Czechs and they should or vice versa, something the Czechs fail to appreciate when dealing with the Slovaks? Despite being close, we are still two different nations and I remember a case when one international corporation hired British experts on intercultural management to help with an efficient and effective Czech-Slovak merger.

My both parents came from Slovakia, my husband was born in Prague; I was born in Bratislava but most of my live we have lived in Czechoslovakia. Perhaps this is the reason that we do not perceive any possible differences so strongly. The Czechs and Slovaks are close to one another also due to history and yet we still have differences but very subtle. In order to understand each other we certainly do not need experts from Great Britain.

You have spent your professional life following economy. Do you still manage to keep up with the latest economic trends?

The main task of an ambassador is not only following political events, but also paying great attention to economic issues. This is even more important in the case of Slovakia, being the second most important trade partner. Economic ties are very strong in numerous spheres. Moreover, economic diplomacy represents one of the priorities of the foreign policy of the Czech Republic. In that sense, my economic studies are an advantage.

Your Livia and Václav Klaus Foundation has an education as a common denominator. The Czech educational system is very often criticised. In which areas do you see the biggest room for improvement and which areas are you satisfied with?

Livia and Václav Klaus Foundation specialises on education. It is not meant to criticise the Czech education system but to support hundreds of students during their high-school and university studies through scholarships, and primary schools children in their after school activities. We also support senior citizens, within the framework of the project “Seniors communicating” we teach the knowledge of using the latest communication devices. In terms of the Czech education system, we can criticise our vocational schools not having enough students and on the other hand too many university students studying subjects of little relevance to the job market. However, I still believe that our education system is a very good one.

Family has traditionally played an important role for you. Where and how do you get energy nowadays?

Family is naturally very important for me. I get energy from my closest relatives, friends and from many people whom I meet.

What are your last words to Czech and Slovak Leaders magazine readers?

The very fact that the Czech and Slovak Leaders magazine is now being published also in Slovakia reflects the Czechs and Slovaks being close to each other and our unique relationship. I wish all those who put together the magazine that it continues to be inspiring in both countries and that its interesting stories capture attention of all generations of your readers.

Your Excellency, thank you for your interview.

By Linda Štucbartová

Photo: Jakub Ludvík

“We want to focus on customers”

Dear Mr. Krtek, it has been about two years since you became a Member of the Czech Railways Board and more than one year since you were elected its Chairman. How would you evaluate that period?

First of all, I would like to point out that Czech Railways is a joint-stock company and its management responsibilities are determined by this fact. Our task is to protect the interests of a stock holder, which is the state, interests of our customers, and at the same time interests of our creditors too. The net debt of Czech Railways Group amounts to approximately 33 billion Czech Crowns and our bonds are freely tradable.

In 2015, we took important steps towards effective company management. We approved our strategy, our fleet modernisation plan, and we are working on our maintenance. Our key areas are as follows: passenger transport, freight transport, and supporting services, like for example the above mentioned maintenance.

Unfortunately, we also inherited many problems of the past which have begun catching on us now. None of them may put Czech Railways at serious risk, but it is necessary that the management is gradually solving individual issues one by one. This, of course, is a long time process.

Which of these issues do you perceive as crucial?

A typical example can be inherited lawsuits and various real estate projects. Another case is a lost arbitration with Škoda Transportation. None of us signed the agreement for 20 engines, back then existing only on paper; however, we have to deal with the consequences.

This case is covered by the media, is on the agenda of the Ministry of Transport as well as the government. So, it is a top-priority problem. Is it possible that a payment of over one billion Czech Crowns according to the decision of the arbitration court may become fatal for Czech Railways?

Definitely not fatal, but it makes a difference if you can use a billion as an investment and buy new carriages or if you, for incomprehensible reasons, pay to a private entity which delivered the ordered engines several years later than agreed. Therefore, we filed a lawsuit and we want to invalidate the arbitration decision at court.

And did you have to pay?

Yes, we did pay, part of the money, the remaining part of the purchase price plus interest, within three days. If Škoda Transportation had a warrant of execution issued for us, it would have been another problem for our company. It would have put running our business and its reputation at risk, and we cannot afford this towards our creditors either. As I already mentioned, Czech Railways bonds are freely tradable. However, we will not pay an inflation increase, which makes about another 750 million. We have informed a supervisory board about our steps and we have agreed on this decision.

Did you discuss the issue with Škoda Transportation owners?

Our partner was always the management. I am not aware of the owner´s identity.

It means that also through you, the state gives enormous contracts to a company whose owner we don´t know. Do you find this correct?

It is not a question for me. I am a manager and I strictly follow current legislation. Anybody can enter our competitive tendering and if they pass the qualification and win with the lowest price, the contract belongs to them. As a state-owned entity we proceed according to law.

Companies from Škoda Transportation Group represent our traditional partners. It is also necessary to recognise that they give work to people in the Czech Republic, which is good. Therefore, we feel quite uncomfortable having such serious conflict with this supplier. Nevertheless, we believe that the court will agree with us and will invalidate the arbitration decision. It is against common sense to tell Škoda the later you deliver the carriages the more money you can get.

At the end of the year you won another important court case, against one of your competitors, didn´t you?

Yes, we did. At the first instance court we won a case against Leo Express that insisted on our payment of over 418 million Czech Crowns for an alleged abuse of a dominant position on the Praha-Ostrava line. We did not commit anything like that and we are glad that the court confirmed that. Unfortunately, the whole issue has not finished yet because a similar case is being held against us also by the other private competitors. However, the court decision is exceptionally important. Private carriers were entering the lucrative Praha-Ostrava line, operated by us, and they supposed we would not behave as a commercial company and would move away. Once they discovered that we are fighting for customers, they started attacking us unscrupulously. We were trying to ignore all kinds of invectives for a long time, but when the media published that Leo Express´ owner describes our activities as criminal ones, we filed a suit and want an apology. We too are a commercial business and have our interests, customers, and creditors. We won´t let others insult us forever.

It might almost look like all your time was occupied by disputes with suppliers and competitors. Isn´t that tiring?

You are right; sometimes I have a feeling I am spending most of my time with lawyers. Cases are of course a burden, but it cannot put the company´s operations at risk. A very important task was to defend successfully our company rating in the investment band, which we achieved in spring 2015. We also issued bonds which in spring 2016 would re-finance some of the older, due bonds. On top of that, for this emission we gained really good conditions that would save us a considerable amount of funds. Let me also mention the fact of keeping our passengers, who had to endure a great number of traffic closures due to the infrastructure repairs. All of this we were able to achieve thanks to effective management and primarily thanks to all our people´s hard work. Before Christmas we also signed a new collective agreement. With the unions we reached a reasonable compromise which ensures social security to our employees and reflects real possibilities of the company. Social peace is very important for the stability of Czech Railways. We have also signed a collective agreement at Cargo which at the same time announces improvement of their economic results in the second half of the year.

Regularly, we can see articles about new carriages in Czech Railways colours. How much have you invested in them?

We are slowing the process of our fleet modernisation down a bit because we concentrate on gradual decrease of our company indebtedness. Even though, this year we have purchased carriages worth billions of Czech Crowns. Thanks to that, higher comfort of travelling comes also to the lines where it has been awaited by passengers for a long time. Let me mention for example: the line Brno – Břeclav – Olomouc where old fast trains are being replaced by new InterPanters. High quality carriages for long-distance transportation from the line between Praha and Brno have moved to the Praha – České Budějovice line, and so on. I think that if people evaluate the changes of several past years impartially, they will admit that our effort is visible. And don´t get upset with me, but this is the two competitors on Praha – Ostrava line who can claim credit for that. After all, new, modernised carriages are working on the lines which are of no interest for these two. If we didn´t have a big state carrier here – Czech Railways, which provides global services all around our country, a systematical modernisation of wagons would have not definitely taken place in such a short time.

Does it mean you deny your competition credit for changes on Czech railroads?

No, definitely not. Competition is useful in every field. But when you realise whose investments into a modernisation of carriages and infrastructure are the highest, it definitely is the state’s. Either through our company or SŽDC. It is undeniable. Nevertheless, let´s be fair. Private competition motivates us, inspires us and does not let us rest. Which is good. On top of that, with them entering the market, also the state and its representatives realised that liberalisation of railways market is a challenge that must be taken seriously. That is evidenced by the ongoing preparation for creating an independent regulator and further legislation changes which after opening the market are necessary here. And the market is opening all over Europe, which means anybody may come here.

Speaking about 2015, we cannot leave out significant events occurrences on our lines. Have you learn your lesson from them?

It is necessary to learn from every extraordinariness. Black ice at the beginning of the year made us strengthen our traffic control and made the communication with SŽDC better, since their infrastructure was unusable due to black ice and thus our trains full of passengers remained standstill. We also fine-tuned our information system and customer care in extraordinary cases across the board. The collision of a truck and Pendolino in Studénka showed how dangerous it is if you violate traffic regulations. I feel really sorry that to make drivers realise that railway crossing lights are not there for fun, our passengers had to die.

This incident undoubtedly also awoke SŽDC being responsible for infrastructure as well as the state authorities. Thanks to that the issue of increasing safety of railway crossings is much more discussed now. Can you as a carrier also take some steps with regard to that?

In this aspect our role is limited since we do not own either crossings or roads. Despite that, we take active part in the activities of the commission established by the Ministry of Transport, whose task is to find the most suitable way of improving safety of railway crossings. Already in spring of 2015, Czech Railways Board of Directors approved the plan of purchasing two simulators where our train drivers would be preparing for similar extraordinary events. At the same time, we are working on public awareness. Unfortunately, people are incorrigible. If drivers followed traffic regulations, nothing like this would ever have happened.

One of your Pendolinos was seriously damaged in the accident. However, you will repair it, won´t you?

Yes, we will, although the cost of repair is quite high. It will be over 200 million Czech Crowns. Even so, it will be worth repairing the unit. Pendolino belongs among the most popular trains of Czech Railways. It was the first train that brought comfort and speed never experienced on Czech railroads before. Every child knows what Pendolino is. It would be unfortunate to lose a unit that generates income and even after more than ten years of operation has no competition here.

Railjet is closing on, isn´t it?

Definitely. Thanks to railjets the number of passengers between Praha, Brno, and Vienna increased by tens of percent. By the way, the case of railjets is another one we won at court and a record high penalty of 25 million Czech Crowns was refunded to us, originally ordered by the antimonopoly office in connection with reconfiguration of these units.

It seems that on one hand 2015 brought a range of issues to Czech Railways; however, on the other hand a lot of successes too. What is your vision of 2016?

What you read in the media is not always the true reflection of reality. We were really successful in many things. I believe, the upcoming year will turn even better. There will be fewer traffic closures and we will continue solving the problems created in the past. We take an active part in the preparations of legislative framework for railway market liberalisation in the segment of passenger transport and in the process of identifying the position of a national carrier. Here, I also expect a positive development. With ordering parties we are already in discussions about a model of public railway transport functioning after ten-year contracts terminate, i.e. after 2019, and I could go on and on. The important thing is to continue systematically, step by step, according to the strategy we have approved.

What is the goal?

To make Czech Railways an effective company with balanced economic activities that will be fully competitive in the open European market. We want to focus on customers, keep service standards high, and constantly improve in all areas of our enterprise.

By Czech & Slovak Leaders

When Traditional Industry Paves Way to Modern Times

The fate and reputation of the steel industry in Central Europe could be compared to a classic “Cinderella” fairy tale. Classic but a bit obsolete and not making the headlines when compared to “trendy“ industries such as IT, biotechnology and others associated with creative start-ups. However, as the example of Železiarne Podbrezová located in Central Slovakia shows, when history and legacy not only meet current needs but also present a visionary outlook to the future, a unique story based on both local and global partnerships is created. The holistic approach of a company that has a 175 year-old history and puts people in the centre of success brings about a long-lasting and fruitful partnership that extends from a private secondary metallurgical vocational school and private high school, continues to sport clubs and reaches beyond to the preservation of the medieval castle of Ľupča or development of the Tále region.

It is exactly thanks to the visionary approach benefitting the whole region and the impact made in several countries in Central Europe that the Czech Leaders Magazine has the privilege to feature the first Slovak citizen on its cover page. Meet Mr. Juraj Křiváň who has been a member of the board of Železiarně Podbrezová a.s. and also the sales director of the company for a quarter of the century.

Mr. Kriváň, you have dedicated more than three decades not only to one industry, but also to one company. Such loyalty and perseverance is quite unprecedented when judged according to current trends. Can you tell us more about your career journey?

To be exact, it has been already 37 years since I joined the company. During the last two years at the university I was given scholarship on merit from a steel factory, so my mind had been made up even before I graduated from the university. I chose the steel factory despite the fact that my father was an HR director of a neighbouring company producing sand; after he realised that I was going to start my career elsewhere he had not spoken to me for six months. My family and grandparents moved to Podbrezová when I was eight and I have been living here ever since. My education was quite special for that era: I studied a secondary technical school and then I went to the university to Bratislava to study foreign trade. One must bear in mind that during the times of Communism it was very difficult for someone who finished a regional technical secondary school to enter a university. I owe this to my father as he helped me with his support and connections. I am quite open about this fact because nowadays not very many people realise how different the times were then. On the other hand, I have never disappointed those who had given me the chance to study. After finishing my studies and completing one year of compulsory military service, I started as the head of new production. Over the time, I held interesting positions when I was introducing a new IT system to the company, I was handling the system of orders and then I became the head of sales and marketing department. For the last 25 years, I have held the position of the sales director and a member of the board. By the way, I also brought my wife from Bratislava to Podbrezová. If I am to summarise in one word the reason why I made the decision the way I did: I felt I would be given an opportunity there. And the opportunity that is exactly what I myself am trying to give to young people.

For younger or foreign readers, can you reflect on the changes brought by the Velvet Revolution?

It was definitely a big change. I just want to remind everybody that during the Communist times, more than 80% of production capacity went directly to the USSR as something that resembled a barter trade. The trade was organised on the state level with the support of Ferromet company. But the fall of the Communism and consequently the collapse of markets of the former Communist countries were not the last significant change for our company. The next significant change was brought by the separation of Czechoslovakia in 1992. Since 1992, my primary task was to build our own sales network and since then we established our dealerships in Prague, Poland, Italy and in Germany. The dealership in Italy uses the contacts to represent us in distant countries, such as the United States, Kuwait, South Korea and Australia. I am proud to say that since 1994 the sales network has been capable to secure 100% of sales of production capacity. From Podbrezová, we directly serve the Balkan countries, Romania, Bulgaria and Estonia, Latvia and Lithuania.

Where did you get the idea to enter the western markets? I can imagine that such a move was quite daring in beginning of the 1990s.

Since late 1991 until 1992 we had closely cooperated with a Swiss consulting company and we had done a year lasting internship. We used to spend four to five days per month in Lausanne and we got the idea that we needed to be directly present in the markets where we wanted to sell. I also got the inspiration from other western competitors. And the model setup has proven to be working for more than 23 years. My approach to the business is quite simple and stems from the belief that both sides need to be satisfied. Selling in our case is a truly continuous work; we produce about 25,000 tonnes of material each month and this is done best with the help of local people who know and can respond to the needs of local customers.

How was the steel industry affected by the economic crisis?

Well, that crisis in steel industry did not last very long, only from 2008 until 2009, compared to other industries. The fact, not often mentioned nowadays, is that there is another crisis going on since May 2015. Prices hit the record low and the steel industry has to bear the consequence of overcapacity from China and the United States. This year, we have lost the US market completely. Of course, we are trying to look at new territories, such as Vietnam, but these tend to be rather problematic at the beginning of cooperation. More than ten thousand jobs were lost as a consequence of the current crisis in the steel industry all over Europe. We hope that the EU will come up with some anti-dumping measures not only against China, but also against Russia or Ukraine. We are represented by the European Steel Tube Association and although we have a support on the level of the European Commission, due to complicated processes related to the EU bureaucracy, it takes a long time to implement any measures. While the United States is able to react and introduce anti-dumping measures within weeks, on the EU level, it usually takes several months.

There is a famous quote saying “We should not moor a ship with one anchor or our life with one hope”. Given your busy schedule and great business achievements, what are your other anchors?

I have always had a high regard for my family and I feel and value their support. I have tried to compensate for the time when I was not with them, and not only in the form of presents but also in form of time spent together, for example during vacations when we travelled a lot. And then I am a big fan of sports, actively and passively. Železárny Podbrezová continuously supports several sport clubs, a football club, a volleyball club, a golf club and skiing activities. Last but not least, I am a big fan of skittles and I am also a member of the Executive Board of Slovak Skittle Union. My interest in skittles goes back to my family tradition. My grandfather was a carpenter and he used to carve skittles in his free time and supplied local pubs with them. In Podbrezová, there has been a long skittle tradition and our team even won the Slovak National League. We used to have only old two lanes; however, the championships are played on four lanes. So it was in 1997 with the reconstruction of the vocational school when we built six lanes and now we have three teams competing in the national league.

You mentioned that already in 1990 all seven members of Železárny Podbrezová Board decided not only to give work to people in the region but also to contribute to the social dimension of the regional development. Besides supporting sport activities for young people, your company also runs two private schools. The first being vocational school with a dual system of education, the second being a high school preparing students for universities.

The vocational school prepares our expert skilled workers. People do not realise that these workers operate high-tech machinery. Just imagine that a rolling mill machine produces 600-700 of tonnes of material per day and when it breaks down, it needs to be repaired, disassembled and assembled quickly. If this equipment is broken, production stops. All 60 students finishing each year find work in our company and they are ready to start working in a particular position. Those who wish, can continue their studies at the university. I am aware of the fact that other companies in Slovakia have shortage of technical skilled labour. The technical and construction work is still very much underestimated since few people are aware of the fact how closely it is linked to much needed innovation and design of new forms of production.

You and I have in common remembering Czechoslovakia, so how do you personally feel about the separation of those two countries? And how are current Czech-Slovak relations being perceived by the new generation in Slovakia?

I still perceive it as a decision made by two politicians and not based on referendum. I personally believe that had the referendum taken place, the split of the country would not have occurred. Now, it has been a reality for 23 years. What I see is that the new generation does not have the close ties that we used to have across the country and most of all, they do not understand the language. During the times of Czechoslovakia, you had the news one day in Czech, another day in Slovak. The same was true about movies, theatre plays, books and magazines. The languages were really close. Today, everything is subtitled even from Czech and Slovak and the nations are not as close as they used to be. My daughter lives in Prague and when I come there and start ordering food in Slovak, no one understands me.

What are your final words to Czech Leaders readers?

I would very much like to point out the long tradition of the steel industry in Podbrezová. I hope that the 175 year old tradition will continue. The industry faces a difficult situation but our company is big enough to deal with that. My life motto taken from my grandfather is that anything is possible if you have the right mindset. I believe that the young generation will take their chance and use opportunities afforded to them. I was also given my chance when I was 25 years old. Last but not least, I would like to extend my invitation to our region surrounding Podbrezová, so you can try yourself our hospitality, including our premium sport and skiing facilities. We try to do our best to provide the top quality services and to present to our guests our beautiful region where the past meets the present.

By Linda Štucbartová

About Železiarne Podbrezová a.s.

Having consolidated a turnover close to 500 million EUR, Železiarne Podbrezová ranks among 15 largest businesses in Slovakia. The company employs almost 7,000 people in Slovakia, Czech Republic, Spain, Italy, Poland and Germany. As an integrated producer of steel and seamless steel tubes, it produces 160,000 tonnes of seamless steel tubes per year, which makes the company one of the leading manufactures in this industry in Europe. With its own sales and marketing network, the company runs its sales in 50 countries on all 5 continents worldwide.

About Július Kriváň

Július Kriváň began his career with Železiarne Podbrezová a.s in 1978 after he had completed his studies at the Economic University, field of study: Foreign Trade, in Bratislava. Over the years, he gained experience holding various roles in the Sales Department until he became the Head of Sales and Marketing Department in 1982. After eight years, he was promoted to Commercial Director and Member of the Board and he has held these positions ever since.