Crédit Agricole

As of January 2009, Crédit Agricole (CA) and Société Générale (SG) agreed to merge their asset management (AM) operations, known as CAAM and SGAM. Marie-Pascale Bonhomme, a managing director at Crédit Agricole, visited us in Switzerland and provided an interactive presentation. Both of these notable banks are located in France, and Crédit Agricole is the largest retail bank in Europe with 58 million customers in 74 countries.

As part of her discussion with us, we divided into several groups and brainstormed about the issues surrounding the merger effort. My team focused on the legal aspects, and the main issues we identified were anti-trust laws and workforce reduction. Just like in the United States, laws are in place to prevent monopolies from being created, and Crédit Agricole being such a large institution, it would likely be required to defend itself in that vein. Although I knew beforehand that laying someone off in France is more difficult than in the United States, it didn’t dawn on me until this discussion that it could be such an issue. Unions have a strong influence in France, and companies must provide explanation that there is no other suitable job and report why the person is being let go. Furthermore, regulations exist that require companies to offer large severance packages.

Marie’s presentation gave me a different look into businesses operations in Europe, particularly in France, and the implications of the merger coincide well with what I have learned about French culture. Most pointedly, the people place a high value on job and economic security, and the national policies strongly reflect it.

The McRaclette and the McM

McDonalds is just about everywhere, including Switzerland and Belgium, yet it’s not the quite same. In Switzerland, the featured menu item was the McRaclette, a large burger by American McDonald’s standards, with a round beef patty and a square bun. It came with pickles, sauce, and of course, a plenty of raclette cheese. A delicious burger, but by my wallet, not a great bargain. The Swiss franc is currently worth about 98 cents, and the burger alone came to 7.10 in francs. In Belgium, the big feature was the new “M” or McM burger. Made with a popular Belgian roll, the McM was also a large burger by McDonald’s standards and had a beef patty, lettuce, tomato, cheese, and a tangy, white sauce. The economics being a little different in Belgium, the burger was €4.50 in Euros, which equates to $6.75 U.S. dollars.

So, one might ask, why is the food more expensive than in the United States?

- Food is generally more expensive in Switzerland and Belgium
- Costs due to offshoring could play a part, since McDonalds is an American company
- In Switzerland and Belgium, McDonalds is not perceived as “fast food” like it is in the United States.
- McDonald’s food is quite arguably of better quality than that which is served in the United States. To add some validity to that, today I heard a native Indian talk of how he will not eat at McDonalds in the United States and he misses the McDonalds food that is served in India.

Despite having many twists depending on where in the world a particular McDonalds restaurant is located, the McDonalds I visited it carried some American qualities that are not always characteristic of restaurants in Switzerland and Belgium.

- Water was available at no extra cost
- Restrooms were available at no extra cost
- There was a play-place for kids

One might argue that I wasted my time going all the way to Switzerland and Belgium and ending up at a McDonalds. Even though I was visiting an American company, I ordered in French. I can say it was well worth the experience, and as you can see, it offers a lot of insight into the way things work throughout the world.

Swiss Grapes, Cheese, and Government

When we first arrived in Switzerland it was astounding to see all of the grape vineyards that line the mountains. Saying that juices and wines are an integral part of Swiss culture would be an understatement. Dominique introduced us to his vineyard and we put ourselves to work picking fresh grapes. I had supposed that the art of producing juices and wines was a passion for them, but I was still amazed as Dominique shared his knowledge about the grape vines – when to prune, when to pick, when to prepare them against the onset of winter. He also talked about the process of making juice and of making wine. The Swiss love their wine, and it shows in the fact that only about five percent of Swiss wine is exported.

Dominique also talked about raclette and the work involved in making the fine tasting cheese. The name “raclette” actually comes from the French verb racler which means “to scrape.” The cheese is made in wheels. In preparation for eating, a wheel is cut in half, then a warmer is used to melt the flat side of the half-wheel and the melted layer is scraped off onto a plate. In general, Swiss cheese is also a significant part of the culture. It is a common menu item at every meal, whether to eaten plain, or placed or melted with something.

Dominique also presented for a few minutes on the Swiss government, which has some similarities to the U.S. government system. The legislative wing or parliament is bicameral, being made up of the Council of States and the National Council. The executive wing is called the Federal Council and is made up of seven ministers, of whom one serves as the president. There is of course a judicial wing which is titled the Federal Court. Considering the Swiss system from my perspective as a traveler, it was interesting to notice how orderly everything seemed. The country is very clean, the drivers were very courteous and did not drive fast, and the trains were always right on time. The Swiss are very orderly and, in general, seemed to be strong law-abiding citizens. One last notable feature about the country is that it is the home of three languages. The west side is French speaking, the south side Italian, and the east side speaks Swiss-German. Most people in the Italian area were bi-lingual, speaking both French and Italian, but the French and German speaking regions were not as linguistically accommodating to their neighbors.

Don Linford & Banco Itau

Banco Itau is an organization of notable size and is furthering its propensity towards growth by its current merger with Unibanco. It is one of the largest banks in Brazil and accounts for 11 percent of the Brazilian Market. It also has banks throughout the world, including New York, London, Tokyo, and Shanghai.

Don Linford serves as the head of International Securities Operations for Banco Itau. As he joined with us in Switzerland it was a great experience to meet with him and have him present to us about his work and his advice for us as prospective international business people. I was intrigued by his background and his yearning for an education despite growing up on a farm and in a family that did not consider or support the idea of higher education. Don shared his philosophy about luck – there is none, and if there is a definition for it, it is when preparation meets opportunity.

He shared other philosophies about how to approach life and work. Despite his accolades and successes as a businessman, he said, “I do not feel like I am successful. There is still more I want to do, more growing for me to do.” His insights were meaningful to me, yet it was hard to be completely persuaded by him. As I thought about family and work-life balance, and I didn’t feel like he had a healthy one. Still, his experience and words of wisdom were powerful and very applicable, and I gained a lot from his presentation.

Day with Dean Douglas Anderson

Dean Anderson is an amazing individual, and I’m grateful for the opportunity we had to visit with him and have a more individual experience with him. While at the Bel Air Hotel in Switzerland, we spent a day in the breakfast room and had an interactive presentation with him. We learned about his background as a Harvard professor, an entrepreneur, a professional business consultant, and as a counselor to the Secretary of the United States Treasury.

As we met and conversed, one of the most engaging parts of the day was the time when he opened up for suggestions and ideas regarding the Huntsman School of Business. We discussed ideas as to how to market to top students, how to manage the business degree program, and ideas for the building itself.

Part of our discussions encompassed strategic thinking, and how easy it is to get sidetracked from reality. A prerequisite for a good strategy is seeing the environment as it is, not as we would like it to be. He made a good point when he said that we usually don’t wake up each day and say to ourselves, 'I’m going to live out of reality today, I’m going to dream all day about what I wish I could be rather than where I am now.'

We also discussed creativity, and talked about how we so often think of mistakes as outright failures and don’t see them as avenues to greater learning and success. We watched a film about IDEO, a design and innovation consulting firm. The aim within the teams of this company is to fail fast and learn the best ways of doing things by quickly finding what doesn’t work. What an unconventional approach! But it’s how we learn, so why not speed it up? IDEO is a very successful organization, and their approach to finding new ways to improve works.

As I consider how I would sum up what I gained from the day with Dean Anderson, I’d say it helped open my mind to the possibilities of my career and it made me think differently about how I approach life and learning. Also, it gave me the opportunity to get to know my dean a little better, and he is a great leader and is an individual capable of taking the Huntsman School of Business to amazing new heights.

IMD - International Institute of Management & Development

IMD is a top-notch educational facility for professional development. It is arguably the world's best when it comes to management education. We had the opportunity to tour the institute and meet with administrators and current students, or participants, as they are called. As we asked questions and learned about how the programs at IMD work, we learned about the interactive culture that IMD fosters.

In the MBA program there are 90 participants that have 5 -7 years of work experience, their average age is 31, and they speak 2-7 languages. The institute's working language is English, yet the participants span numerous nationalities. Similar to the other programs, IMD manages its MBA program so that the participants learn from and teach each other, and the "Discussion Leader" facilitates that learning environment. Unlike your typical professor, the Discussion Leader understands that he or she may not be the most well-versed or experienced person in the room. The participants take on various real-life situations and they debate and share ideas in order to come up with the best solutions. I am fascinated by this approach, and I see it as a model for education throughout the world. It creates a powerful environment of learning that opens the doors of communication, drives the participants to work people from various cultures and opens their eyes to new perspectives. What better training program could there be for the world's leaders and managers?

Another distinct feature of IMD is the "what's next?" advising it offers to the participants as they complete the program. IMD gives personal attention and helps inspire personal development and discovery. As I look at IMD as a whole, it brings people from all around the world and provides a great environment and challenging adventures that allow them to teach each other. IMD is coordinator of learning; a place where experienced professionals gather to help each other grow and prepare for an exciting future as leaders throughout the world.

Hospice of Saint Bernard

Ever wondered where St. Bernard’s got their name? This hospice resides high in the Swiss Alps in a small community. Dating back more than 1,000 years, travelers coming through the Great Saint Bernard Pass struggled in the winter cold and were often found trapped in the snow. The hospice was built in 1050 and became a spiritual and physical refuge from residents and incomers alike. Priests who served and resided in the monastery would rescue and assist travelers and offer them hospitality until they were well or until storms passed. Naturally, the priests had to know how to ski, and they would go out twice day with food and pass around the mountains looking for stranded travelers.
Nowadays the beautiful area serves as a spiritual refuge for those looking for peace and tranquility in an increasingly busy, materialistic world. Joseph, our host for our visit, has been a priest for eight years. He grew up in a town nearby and that is how he is acquainted with Dominique. He decided that this life is service was his calling, and was called to serve in this area while in living Paris.

St. Bernard was the priest who built the monastery and began the tradition of helping the passing travelers. The St. Bernard dog was essential to the help they rendered as the dogs are strong and enduring enough to carry sleds. They also helped find people who had been buried in the snow. With their help, the priests were able to help and save the lives of many people.