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Innovation and Tradition ceo* The magazine for decision makers. sept./oct. 2006 Competition. Get the look! The right design determines success. Technology. Integral Science Data Centre – the Swiss listening post in space. Growth. Raiffeisen – why the whole is greater than the sum of its parts. Publisher: PricewaterhouseCoopers AG ceo magazine, Birchstrasse 160, CH-8050 Zurich, Switzerland Editors-in-chief: Alexander Fleischer, [email protected], Franziska Zydek, [email protected] Creative director: Dario Benassa, [email protected] Concept, editing and design: purpur ag, publishing and communication, zurich, [email protected] Photos: cover: Roth und Schmid, page 3: Andreas Teichmann, page 17: Vincent von Ballmoos, page 25: Markus Bertschi, page 32: Marc Wetli, page 36: ESA, Illustration ESA/ECF, page 39: ESA 2002/Medialab, page 40: ESA 2002 Lithography: CMS Sticher AG, Printing: Sticher Printing, Lucerne Copyright: ceo magazine PricewaterhouseCoopers. The opinions and views expressed by the authors do not necessarily reflect those of the publisher. ceo magazine appears three times a year in English, German and French. Circulation 35,000 Free subscriptions and changes of address: [email protected] Being open to novelty and willing to tread new ground is essential for embracing change as an opportunity and profiting from it. Dr Markus R. Neuhaus, CEO PricewaterhouseCoopers, Switzerland Today, growth heads the list for companies One of the greatest challenges we face is personally cope with the conflict between and managers in Switzerland. We see a the increasing complexity that accompanies tradition and innovation. And in an interview similar picture in many places: savings change, both within companies and in their on page 42, Maria Cristina Bombelli, potential has been located and exploited; environment. Here, CEOs are constantly lecturer at the SDA Management School ensuring compliance is no longer a threat- tested as drivers and models, as simplifiers Bocconi in Milan, talks straightforwardly ening worry. In short, the house has been and signposts in a daily jungle of complex- about her research findings on the subject tidied up and consolidated. Because the ity. And this under the increasingly attentive of diversity – another important aspect of overall economy is growing again, the ques- and judgemental gaze of the outside world. societal change. “We champion people who tion is now that of above-average growth – Shareholders, legislators, analysts and the share the same values, opinions and ideas stronger than the competition. But where media expect companies to pursue a as we do. It is difficult to accept anything will this growth come from, and how? responsible strategy geared to long-term that is different – but that is the very value creation and to guarantee effective essence of diversity,” says this scientist. Planning future growth management. Stakeholders demand that And in so doing, she gets at the real issue To the question “where?” the answer laws be observed in all territories in which a underlying these diverse topics: our own frequently is globalisation. Companies are company operates and that economic crime attitudes to change. becoming international and opening up be met with firm action. They insist on Whoever meets change with curiosity can sales markets on every continent. The transparent and morally irreproachable tax more easily overcome barriers, solve prob- answer to the question of “how?” can be conduct, and values-based corporate lems and exploit opportunities. found in the M&A market. The search for management and reporting. attractive acquisition objects or strategic I wish you a stimulating read. partners is more intense than it has been for Setting clear priorities a long time. The ubiquitous discussion These topics, of immense importance for Markus R. Neuhaus about innovation, too, is an indication of our CEOs, are covered in our PwC Spectrum, preoccupation with future growth. But both starting on page 26. Just as a foretaste: In innovation and growth spring from the same managing exposure to change, companies essential source: curiosity. Being open to need to set clear and decisive priorities that novelty and willing to tread new ground are embraced by all levels of their organisa- is essential for embracing change as an tion. opportunity and profiting from it. The other articles in this issue of ceo* deal in the widest sense with the changes taking place around us. In our Forum, four quite different managers describe how they ceo/editorial 03 ceo2/06. sept./oct. contents pwc expertise Succession planning relies on experience: Change in the management of PwC Switzerland. 25. Corporate Governance: It is increasingly Caroline Gruosi-Scheufele, co-president of Werner Augsburger, head of mission, Swiss important for companies to pursue tax Chopard, writes in ceo* Forum: “People Olympic Association, writes in ceo* Forum: planning and compliance strategies that who like special things and have the money “It is part of the nature of sport that it are sustainable and structured. to afford them are highly discerning.” demands ever more innovation within tradi- tional rules and boundaries to facilitate peak 26 06 performance.” 08 5 minutes: Business information and research by PricewaterhouseCoopers. 29 Risk: Shareholders, legislators, analysts and the media today expect companies to actively combat fraud. 30 Complexity: A CEO today is confronted by the immense challenge of controlling growing complexity so that he can fully exploit available opportunities. Geneviève Morand, founder and CEO of Dr Ulrich Körner, CEO of Credit Suisse Rezonance, writes in ceo* Forum: “If we Switzerland, writes in ceo* Forum: 32 want to encourage our ability to innovate, “For 150 years, Credit Suisse has made the first thing we need to learn is how to innovative strength part and parcel of its overcome our fears.” tradition – by consistently driving innova- Service: Events, publications and analyses. tion, but at the same time adhering to its Subscriptions and addresses. 10 unwavering fundamental principles.” 12 35 04 ceo/contents Trend. Milan-based gender researcher Maria Cristina Bombelli on diversity: “There is a growing awareness that women broaden and supplement the perspective of a management team – and thus have a direct Special: Form & Function. Get the look! When it impact on the success of a company.” comes to creativity, Swiss companies are world-class. 42 14 Probing the secrets of the universe. At the Raiffeisen. CEO Pierin Vincenz shows how Integral Science Data Centre, in Versoix, a to make a complicated network succeed – small team of scientists and engineers are a lesson in management. mining information from space. 36 44 “Ulysses”, the leadership-development programme from PricewaterhouseCoopers. Building professional competence in an unfamiliar environment: for example in Uganda. 52 ceo/contents 05 forum1. innovation/tradition Caroline Gruosi-Scheufele: The jewellery market is eager for innovation! People who like special things and have the money to afford them are highly discerning. Caroline Gruosi-Scheufele (44) is co-presi- However, in our company innovation does since then we have been able to call dent and creative director at the Geneva- not mean regularly reinventing yourself from ourselves “makers”, a title that is reserved based watch and jewellery maker Chopard scratch. In the jewellery sector, for example, only for companies that produce all the indi- and, together with her brother co-president we can develop our creativity by building on vidual parts of their watches themselves. In Karl-Friedrich Scheufele, responsible for the foundation provided by tradition. The contrast to other companies that are intensi- marketing. new collections are a supplement and an fying their outsourcing activities, we attach extension of our range of products; every great importance to insourcing. Chopard Gold, precious jewels and diamonds needed collection that proves its worth will become also possesses its own gold smelter and ages to develop, and they will outlast us all. a classic some day. And if it maintains its produces its own alloys. For thousands of years, they have been appeal for even longer, it will one day We are forging totally new paths in market- objects of desire, the symbol of beauty and become part of tradition. With this principle, ing. We are a sponsor of numerous VIP power. The jewellery trade has been around we are following the life cycle of our clients, events, and one of these events is the film for as long as there have been women. for we want to inspire an elderly lady just as festival in Cannes that we have been I also feel personally part of this tradition. In much as a young businesswoman who is supporting very actively for nine years now. 1860, the foundation stone of the Chopard buying her first brilliant ring. This sponsorship makes it possible for us to watchmaking factory in the Swiss Jura was I travel a lot and keep my eyes open in every have the most beautiful ambassadresses of laid. Round about the same time, my great- country I visit. This provides me with inspira- our jewellery walk down the red carpet on grandfather, Karl Scheufele, began to make tion for new collections. Often, I already the Croisette. Quite simply, a fabulous collier watches in the Black Forest. My parents know in the design phase which customer looks more dazzling around the neck of bought Chopard in 1963; my brother and I segment a new line will address and what Penelope Cruz than it does on a velvet cush- are fourth-generation watch and jewellery the marketing needs to be like. I also regu- ion in a shop window! makers. In the luxury goods industry, growth larly visit our boutiques all over the world In the charity sector too, we are working is not possible without courage and entre- and have a very precise knowledge of grass- together with the world’s most famous preneurial spirit, because the expectations roots requirements. Once I was in New York celebrities.
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