tv Sino Tv Early Evening News PBS November 11, 2010 6:00pm-7:00pm PST
♪ >> hello, welcome. this is the eternal. i am chain. >> and i have the business news. >> divisions of the g-20 summit as participants debate trade and currencies in seoul. after the last election, iraqi parties agreed to form a new government with nouri al-maliki as prime minister. >> investors jump more irish bonds as fears grow that ireland will become the next home of the european debt crisis. ♪
>> hello and welcome. the host of the g-20 summit, and young back, has surged to summit leaders to work towards a meaningful conclusions of intentions over the world economy. major differences emerged between the united states in big exporting nations like china and germany. both countries have criticized the federal reserve's latest round of monetary stimulus and rejected washington's proposal that excessive trade surpluses should be kept. some observers have warned this could turn out to be an acrimonious summit. >> the german chancellor had a small victory to celebrate right from the start of the g-20 summit. the group agreed that it would not seek to limit excess of trade imbalances, which the u.s. had lobbied for. >> i made it clear that it is very important to us and we have received a lot of support on
this that we have free global trade without protectionism. because that way, a lot of jobs can be traded in germany and other countries. >> other disagreements await u.s. president barack obama at the summit. many g-20 members are not happy that the u.s. is again pumping money into the market through a renewed policy of quantitative easing. here, too, the greatest opposition comes from chancellor merkel, which she repeated in a one-on-one discussion with barack obama. it was likely to have been a tense conversation. the two have not often found themselves on opposing sides. but the other summit participants can also expect tough talks over issues such as currency policy. merkel did have a less taxing event, the women's university in seoul awarded her with an honorary doctorate in political science.
>> we will be taking an in-depth look a the g-20 summit later. at least 15 people have been killed and 100 wounded by a car bomb attack at a police compound in karachi, the largest city in pakistan. officials suspect the blast was a suicide attack. the assailant apparently fired guns and then drove the vehicle filled with explosives into a building in the compound. the blast leveled at the structure which at the detention facility. police were holding criminals. the compound is in a high- security area that is home to the u.s. consulate, luxury hotels, and regional government offices. iraqi political factions have sealed a power-sharing deal, ending more than eight months of deadlock following an inconclusive general election. nouri al-maliki will stay on as prime minister and convene a new cabinet at the end of next week. the deal came about after the secular leader give up its opposition. under the plan, a key posts will
be distributed among the shia, sunni, and kurt communities. earlier, we spoke with the reporter in baghdad and ask whether this agreement will create a stable government capable of ending the violence in iraq. >> we found much hope. i think we are at a stage in iraq or any government is better than what we had. it is a national unity government, so it has representations from all sides, many of whom are deeply it odds with one another. that could create problems in the future. but i think the government will be formed to fill that existence in the country that has been fueling the violence and sectarian activities. >> will the new government be able to address some of the other issues which of been on hold for the last eight months? such as how to share iraqi oil profits?
>> well, i think that should be a priority for the new government. i think it is possible that the power struggles over fuel sharing -- a big problem is created by the fact the the kurdish region in the north is keen to make the most of it. there have been disagreements on how to arrange this. but the kurds have had a lot more influence in negotiations with the main parties in iraq. it may be that because of this, any deal that is hammered out might benefit them sooner than what might have otherwise happened. >> germany's federal aviation agency has carried out a series of raids at airports across the
country in order to identify vulnerabilities in security. it is after one of two possible bombs and to infer addresses in the united states was routed through cologne airport. the german government wants tighter controls over cargo deliveries and authorities and inspecting all cargo companies operating in germany over the coming weeks. in a fine working group melt -- will make proposals on how to handle freight from countries with unknowns security standards. we have been talking about the year all week. >> renown, it is all about ireland. is arlen on the brink? investors are unloading irish bonds in droves, a strong signal that little confidence that ireland will be able to pay its debt. on thursday, the yield for irish bonds and shot up to 9%. analysts say dublin will probably have to ask the eurozone for a bailout, just as greece did. >> as the european winter looms, temperatures in ireland are
falling. but on the international financial markets, things are heating up. investors are demanding record interest rates of up to 9% from the irish government to refinance its mountain of debt. the country's chief anchor is realistic. >> we will never get back to the yields that we had before the crisis in to thousand five and 2006. because the crisis has exposed the scale of the risks can -- that can be involved, and investors will want to be compensated. >> it is not just ireland that is affected. a debt crisis pattern is emerging. first, interest rates for greek government bonds shot up. when eu civic, there is temporary relief. now they are upping the bond yields for ireland and portugal. the eu commission president tried to ease concerns ahead of the g-20 summit in seoul, saying the eu has the necessary instruments to tell about debt
stricken states. but the 750 billion euros to do that all the projects countries threatened by acute insolvency. as the greeks are discovering, it does not solve the core debt problem. austerity measures imposed by athens are deepening the recession and lowering state revenue. >> some good corporate news know, simons has increased its dividend to shareholders by 70%, a huge sign of confidence in the company that it will be able to continue generating more income. cells rose in the last 12 months by 8%. profits jumped to four billion euros. >> the message from the seamen's boss is clear, after a corruption scandal in 12 years of restructuring, simmons is a normal company again. they're concentrating on three areas, industry, health care, and the environment. in the near future, the company expects so-called green technology to make up half of its sales.
>> globally, we are by far the company with the most wide- ranging environmental portfolio with 28 billion euros. we have more than 140,000 staff and 16,000 patrons in the sector. >> with a presence in 190 countries, there profiting from resurging world economy. its biggest current problem is a lack of skilled labor in germany. >> that is the central issue for me when we're talking about competitive strength and innovative leadership. we have 3000 vacancies for engineers and we cannot fill. >> solving this issue is his priority. >> european stock markets ended lower on thursday. new worries over ireland's of fiscal health a weight on equities. plus, pessimism about the result of the g-20 summit in south korea. we got this wrap up from the frankfurt stock exchange.
>> siemens must be regarded as one of the highlights of the past quarterly results of the reporting of a lot of companies. siemens delivered in terms of profit in by hiking its dividend, strongly hiking in. investors really loved that. and they made at the siemens the strongest share of the day, and it gained tremendously. not all shares gained. banks lost, not only here in the german market but also on europe-wide. there's a lot of worry about the act of the european debt crisis. ireland is now in special focus. people are almost taking it for granted that ireland will be the next country to need the rescue package. that is also one of the reasons why german public bonds were very much in command. they have the reputation of being a safe haven in crisis times. >> all right, thank you. let's look at how the markets ended the session. the dax index went into the evening slightly positive,
nothing to talk about. more reflective image of how markets fare on thursday is when you look at the euro stoxx 50, down by about 0.5%. in new york, a downbeat outlook by cisco systems, driving the market lower in late trading. it is down by about two-thirds of the present. the euro continuing to lose muscle against the greenback. $1.3653, the lowest level since august. europe's aviation safety agency has issued new tougher safety checks for the engines on all a380 jumbo jets. it is after an engine failure last week on a qantas a380 near singapore. since then, that have grounded the entire fleet. lufthansa also uses the jets and will do more checks during scheduled downtown. airlines have said the stepped-
up maintenance will not cause delays. all right. back to you. >> all right, thanks. cerenies have taken place to remember the 155 people killed 10 years ago when a mountain train caught fire in an austrian ski resort. distal passengers escape when the blaze broke out in the tunnel. tenures on, victims' families are angry that nobody has been held responsible. -- 10 years later. >> buried families -- a bereaved families joined the group here. lessons have been learned from the tragedy. but words do little to alleviate the anchor of some relatives. >> this day must not pass without as raising the issues we still battle with. >> we cannot understand that no one has been found guilty. >> the fire started in the mountain train as it climbed
through a tunnel. 155 people died in the flames or suffocated. but what still angers many relatives of the victims and survivors is that a court acquitted all 16 people charged over the disaster. the fire is believed to have been sparked by a faulty phan heater manufactured by a german company. prosecutors investigated and arrived at a different conclusion to the court in salzburg. according to their findings, the trial should have had a different outcome. that is just one reason why the bereaved families have vowed to fight on. relatives attended in a formal complaint -- complain to the european court for human rights, hoping it will lead to a retrial. klaxons and on the currency markets is moving investors to look for a safe haven, not only in gold but also in diamonds, rare gems, and works of art. the new york auction house, christie's, sotheby's, and
philips are setting records as rich art lovers turn their cash into hardcover. turnover is expected to remain strong. >> the banks since dined cartoon style painting sold for $42.6 million. making it the u.s. pop artist most expensive work today. for the art market, it was an encouraging end to the fall auction season. since 2008, purchases had declined. but now bidders are back with buyers from the u.s. dominating. >> i think we can confidently say that the art market is with us. there is the feeling that art has held up extremely well as an asset class against other asset classes. so a lot of people so confident. " two weeks of sales, new york auction houses, christie's, sotheby's, and another brought works under the hammer for a combined price of over $1 billion. buyers seem to be increasingly
interested in vesting in contemporary works. >> some of it by is a great piece of art like the crossover -- like a picasso or margarine artist is moving towards -- [unintelligible] so it becomes one market. >> of the same time, some works that were expected to sell high left better school. one andy warhol paintings sold for less than half the estimate. but there were enough record sells to leave the business optimistic about the coming season. >> one says he will not stand for franz beckenbauer reelection franz says he will not stand -- franz beckenbauer will not stand for reelection for fifa. he says he has enjoyed his time on the committee, but he wants to spend more time with his family. he will make his last appearance fort franz beckenbauer with the
nominees to host the two dozen 18 and two dozen 22 world cups are announced in early december. but he will not disappear from public life completely. he will remain the honorary president of his support former club in munich. it is that time of year again when everyone gets very excited in germany. german-speaking countries and regions. on november 11 marks the start of the carnival season, which is especially strong in catholic areas. it was kicked off. 11 minutes past 11. there we go. meanwhile, repent north dakota. the stronghold -- repent indeed. revellers welcome to the fifth season of the year. what does that mean to cologne? carnival climaxes in early march with the gigantic parades'.
20th anniversary of the fall of the berlin wall. exciting historical footage, super realistic 3 d animation, an exclusive on this material. the dvd at dw store. >> hello. welcome back of the g-20 summit in seoul has to deal with deep divisions between leading economies trying to narrow differences on exchange rates and trade imbalances. asia has been gaining more and more weight in the global economy. the economic crisis did not hit asia as hard as the u.s. and europe. case in point is south korea's economy, or the g-20 is taking place. it is expanding at a merry clip with growth around 6%, much of it due to exports. but consumer spending is also playing a role. >> the daily consumer may him in seoul's shopping district. shopping is one of south korea's
favorite pastimes. there is no visible trace of an economic downturn here. and well-heeled tourists from japan and china helped keep sales booming. it is a golden age for retailers in the south korean capital. the demand for luxury goods has already surpassed levels reached before the global economic crisis. sales of cosmetics, expensive handbags, and high-end cars that run between 30% to 50% on last year. european designer labels have been the biggest winners of the shopping spree. >> even last year we could hardly feel the effects of the crisis. we did not experience the turnover collapse seen in other countries. this year, our business is growing strongly. south korea has become one of our most import markets worldwide. >> south korean companies are
also posturing. automakers are also benefiting from an upswing in exports. kia motors posted record profit increase of 66% in the third quarter. but the south koreans are concerned the pace of growth could soon stall. the weak dollar has led to a strengthening of south korea's currency. this is putting pressure on south korean exports. it threatens the global competitiveness. >> the valley of the south korean woyuan has to be controlled. ap's another business depends on foreign sales, so the weakness of the u.s. dollar is a big problem for us. >> as an explanation, prius defending similar interests to germany at the g-20 summit.
it is resisting u.s. calls to reduce its ballooning trade program. >> the biggest asian exporter is china, which this year overtook germany as top exporting nation. china stands accused of keeping its currency artificially low in order to keep its products competitive. the u.s. federal reserve has just pump more freshly minted money into the economy, letting the u.s. dollar plunged. such currency moves are vital for small and medium businesses depending on exports. well, we look at a firm in hamburg which produces machine security vals. >> unless it is airtight, a valve is useless. this company is based in hamburg, but two-thirds of its products are sold abroad. each of valve has to understand the quality controls before export. every one is tested to its limit.
which can be loud. >> the pressure is a very high. we can test up to just over 500 bar. >> it is dangerous. it is bulletproof glass. that is why we are calmly standing around. >> but there are dangers for the managers to deal with. many of their valves are exported to the u.s. and china. if these countries implement policies to the value their currencies, german exporters pay the price -- to devalue their currencies, german exporters pay the price. >> it could take up to a year from receiving an order and so the bill was finally paid by the customer. reprieve finance the goods. and in the course of the year, our results could be strongly influenced by currency fluctuations. >> meaning profits -- >> yes, ultimately our profits. >> as a medium-sized enterprise,
a few options to protect themselves against currency fluctuations. this is made parts of its export business of far less lucrative in recent months. >> in the short term, we bite the bullet. but over the medium term, there must be consequences. >> and those are? >> investments in foreign markets. >> in china, for example, the currency devaluation race between the chinese yuan and the u.s. dollar makes potential investors nervous. >> we carefully consider where we locate -- where we locate our subsidiaries. we look at the markets and reliability and stability play very upon role in deciding. >> currencies irrelevant? >> the currency is very
relevant. >> of the global currency imbalances continue to persist, it is their entire business that will have to withstand a pressure test. >> the multibillion-dollar bailout of banks from three continents with taxpayer cash have led to painful austerity programs for millions of people who are seeing their futures level. in britain, students have rioted over the tripling of university fees. the bank bailouts there were supposed to help small and medium-sized businesses. but so far, most of them have not seen affordable loans if any at all. >> coffee breaks with his wife instead of with colleagues at the cop -- at the office. chris became self-employed two years ago and has since worked from home. although his business ideas have been well received dummy cannot afford to pay for office space.
he uses his mobile phone for advertising. yes the website, partners, and a business plan. but his company has not received a penny of credit from the banks. >> what they said was although we like it, until you have proven the business plan and you have those cash flows and are up and running, from our point of view, it is not something that meets our leaning criteria. >> the zero entrepreneurs started his company with his own savings and loans from family and friends. but this cash has now been exhausted. he needs to invest in marketing but lacks the necessary capital. his problems are typical of many small businesses in britain. they cannot get credit. or if they can, only at an exorbitant interest rate. the interest rate is increasing the the base rate is just 0.5%. the british bankers association says small businesses close to high-risk in the current climate. >> in the past, banks would gain
market share and were willing to price more competitively, to get a competitive advantage. now there is not the room to do that. so they're charging the proper risk adjusted price. >> as well as keeping the base rate low, the bank of england is also pumping money into the economy. but many banks are holding on to the extra cash. >> many are simply too big still. and they are aware that several years down the road, there will have to build of three times as much capital than before. all that means that there breaks of constraints on lending, new lending. many people will not to shrink their balance sheets to raise its capital ratios. >> chris plays the blues to ease his frustration. but he remains optimistic that
mentor, who was there at the initial episodes of this series. he is professor david lank, who is director emeritus of the dobson center for entrepreneurial studies at mcgill university. we asked him to take us into the heart and soul of the entrepreneur-- what makes him or her tick. here he is. david lank, people who have been watching the dobson series of course remember you as one of our original--the original-- mentor. - right. - sort of mentoring our younger startups. and in your career in business, you were just telling me a minute ago that you've presided over the startup of maybe something like 150 companies. - that's a bit of an exaggeration. it was 148, so you're close. and at the time, we didn't have enough experience. as a matter of fact, we had too much enthusiasm that any good idea competed with any other good idea, no matter what the industry happened to be. and so when we look back over the 148 companies that we at helix investments actually started,
we really have to ask ourselves what we were thinking when we made some of those investments. - or drinking. - or drinking, or something else at the time. but it certainly, i don't think, is inaccurate to say that i don't regret any one of the investments that we made, because we learned something from every single one of them. and, more often than not, even if a company went bankrupt and someone went down like the benson & hedges fireworks display--it was not just bankrupt, it was bankrupt; it was fabulous--seldom did we make a mistake on the person. and that person, phoenix-like, would rise again from the ashes of the preceding company and have a wonderful success doing something else. - and we often hear that: that the person is key. but they're key, but not on every idea they get, is what i'm drawing as a lesson. - no, and i think that's one of the biggest pitfalls in entrepreneurship: that you tend to fall in love with your idea, whether it's a product, whether
it's a technology, whether it's a process, and you are going to write a business plan, which is going to prove that how can you miss? it's interesting. think of it. there has never--by definition--there has never been a bad business plan; they're all perfect: "invest in me, and you can already make your down payment on your yacht or your car or whatever else you want." so how come 85%, 90% of all the new startups don't make it into the second or third year? not because of the business plan; it's because the people got set off in the wrong direction. and, overwhelmingly, there are one of two reasons: one is emotional, and one is from a practical point of view. the emotional one is that you fall in love with your technology. the technical... product. the world got along quite well without it until you discovered it, and the biggest blockage to acceptance is what you're going to replace is not somebody else's new product; it's what
was already there, which was perfectly good enough. but you are going to push until the world accepts my idea. well, the world doesn't need to accept your idea. - and there's a huge amount of inertia to overcome with anything, because, as you say, it wasn't there before. i guess a lot of these people have so much confidence in themselves that initially that strikes them as a detail. - "confidence in themselves." that's one way of wording it. some of these guys honestly get off--i really believe this, that being right, being convinced that you're right, is a narcotic. it's a form of self- gratification, of reward systems. and you can say some other people get off on drugs or alcohol or tobacco or whatever it happens to be. but to be right, even though all around you there are perfectly clear examples of why you're not right--or maybe you're right for today, but that doesn't mean you're going to be right for tomorrow. - and i think they draw
solace... of course, the ones who do make it, and who make it sometimes on a colossal scale... - oh, huge, yeah. - ...brag about it, and say, "i started with nothing, i started with a dollar, and look at me now". and the one who is stuck with a dollar and what he thinks is a similar idea, just as good, draws solace as he's crossing the desert. he thinks of that, but that may actually be harming him, because he's not questioning his idea. - you have to question your idea. if you look at some of the really great success stories... before we get onto the success stories of the past, there is that technical side. if i could find a common thread as to what lead to the failure, or the lack of real success, on these companies that covered an entire range of industries and countries and cultures and everything else, it would have been the loss of financial control--not of voted control. you can have 100% of the shares, but if the bank calls your loan, you've still got 100% of the shares, but you don't have any company left. so i can't
emphasize enough how important, in the reality of an entrepreneurial world: you've ur financial situation is. so that's really key. - and cash flow, and so forth. - cash flow, yeah. but also, i know what i sell you a product for, but do i really know what that product costs me to be able to sell it to you? and a lot of guys say, "ooh, look at my sales! they're really up. look at the cash flow. it's really up". but then all of a sudden the crunch comes, and you don't have a company anymore. - and how about credit? i mean, when we meet entrepreneurs, one of the favourite questions--and usually you get a dramatic examples of some kind of anecdote or something to illustrate--is the banker, because most of these things need credit... - they do. - ...and banks say they love entrepreneurs, but let's face it... - they don't. - it's not in their bones. - but nor should they. that is not the role of a bank. a bank is there to make sure that you get paid back on a predictable
basis at a predictable time and at a predictable mathematical model. entrepreneurs can't do that. i always sort of smile at these young mbas that come along, and they get a computer projection of the first five years, accurate to the seventh decimal point. and it's a perfect line. well, come on. it's an unknown product in an unknown market, and you're going to tell me that in year five you can predict that your return on investment will be 8.976543321%. chances are, you're never going to make it to year five, because the figures at year five may well turn out to be month five, in which case you have to accelerate unbelievably the amount of money that you're going to have to find somewhere to ramp up your facilities, or your production facilities, or to finance your inventory, or whatever it happens to be. so the banks love projections that are computer-generated. they don't like real life when it comes to this.
- and would you recommend that people of the... there's the other, old system, where your friends and your family chip in. i mean, that has its pitfalls as well, but at least it's not a bank pulling the plug on you. is it better to do without the banks? - you cannot do without the banks at some stage in the game, but i think that you will never have a chance to see what that stage might be if you start with a bank. you've got to start with, first of all, yourself. i remember years ago, robert, there was a couple of professors at a university that will remain nameless, only because it could have been any university; it didn't have to have been mcgill. they came to me with a really great idea. it was a fabulous, fabulous idea, and i was ready to invest. so i said, "okay, now, when are you guys going to then move to..." they looked at me as if i came from a different planet. "move? we have tenure." - ah. these were professors. - sure. - oh, okay.
- so i said, "goodbye". look, it's their idea. it's their passion. nobody has got their idea and their passion to that same integrated kind of magical chemistry. they're the only ones who can make it work. but they were not willing to give up tenure. - for you it was the acid test demonstrating that they weren't ready to-- - mortgage your house, give me your firstborn, or whatever it's going to take. and you're going to be an entrepreneur because you have no choice; you've got to do it, you have to follow your dream. and i think that it's indicative that in the 148 decisions that we made--remember i said there's never been a bad business plan--we never made one, not one of those decisions to invest in these startup companies was based on a business plan. - but always on the person. - on the person. i could tell you within 15 seconds if i could smell the fire in their belly. we made them write business plans to make sure they went through the discipline of asking the questions. what we really
wanted them to do, however, was to recognize that a business plan was not something you did for us; it's what you did for yourself, for your company. and that you referred to it on an ongoing basis to make really sure that if you and your mileposts were not tracking where the market was going, that you didn't try to get the market to listen to what your business plan was all about; you changed your business plan in order to get some kind of a toehold-- first mover advantage or whatever it was--by saying, "well, my business plan", surprise, surprise, "wasn't perfect. i'm going to change it." - and entrepreneurs, i've often had the impression: even when they're good, they're better at talking than listening. and of course what you're talking about is you have to listen to the market, you have to listen to the customer, you have to... - there's what i call the biological imperative. and sometimes today in our too-highly-specialized and compartmentalized training at
universities, we don't look at the other disciplines. biology and business should go hand in hand. every successful organism on the face of this earth has to stay in complete and constant contact with its surroundings. otherwise, it becomes a dinosaur or it just disappears, because it can't adapt quickly enough. why is that true for the natural world, and entrepreneurs or bankers think that's not essential for a company to stay in constant dialogue with its surroundings? - true. - you have to. - but the entrepreneur is such a salesman or saleswoman, they're too busy selling, they're too busy pushing their idea, to see what's going on. - well, i wouldn't necessarily agree with that, because far too often the entrepreneurs don't realize their own weaknesses. it takes more than an idea to start a company. it takes more than a company to have a market. they may be brilliant in
some technological innovation. they're lousy salesmen. - hmm. - the biggest difficulty is to get that transition smooth enough to recognize, by looking in the mirror, "i'm not the right guy to make this company grow. i was the right guy to make this company start, but if i keep up..." the old expression: "the rock on which i foundered is the rock to which i cling". well, i'm the rock, right? i started the thing, but, bang, i hit the rock, i'm going down, i'm going to cling to it. me. the company is not going to make it. in this interrelated, litiginous world, you can't do it on your own. there was a time when maybe you could. - mm-hmm. - but maybe that time disappeared with the silk route, back 500 years ago, where some guy on a camel was an entrepreneur that did everything. you can't do that today. - and are entrepreneurs... i mean, maybe they can become good listeners, but are they good collaborators with other people? partnerships often founder, too.
- they do. whether they are or they aren't is perhaps not the right question. if they're not, do they have any kind of hope of having a sustainable business? and i would submit that if you're a betting person, unless you have a good collaborator, you don't have a good businessman. - really? - because today it's too interrelated, it's too interconnected. there was a time when you could identify your stakeholders as employees, shareholders, customers, that kind of thing. who are the stakeholders today? people who can't stand you, who don't like the system of capitalism, who don't like whatever. they will not go overboard in checking their facts when they launch either a blog, which you cannot then control... - oh, yeah, the media, yes, the media are murder. - they're not your stakeholders, but to pretend that they're not, you're just asking for real problems. - mm-hmm.
- everybody is a stakeholder today. we're that interrelated. time, distance, have disappeared, and the likelihood of misinterpretation through ignorance or wilful distortion has never been a greater threat than it is right now. - and if you observe people who have started companies and they have grown and therefore they have quite a few people in them, not just partners or stakeholders but just plain old employees in great numbers-- - oh, but there are stakeholders. they are key. - they are, yeah, as a group they are. but what makes a good leader of employees? i mean, is it like the political talents? - no. i don't think you can draw huge parallels or comparisons between the political system. leadership is leadership is leadership, and you recognize it. if i were to as you to describe in detail last night's sunset, you wouldn't be able to do it, but you saw it. why does that person, when he or she walk into the room, emit this aura of trust? to me, the greatest thing for a leader is
honesty, and consistency between thought, word, and deed. if i say something, but do something totally different, not just within the context of my company, but--and this is something which of course will really rub some people the wrong way... you've never met somebody before. you're stuck with him or her on the golf course, and even though you're not keeping their score, you are, and you know damned well that they're playing the preferred lie. - what's that? a mulligan, you mean? - no. they shot a nine. they prefer to lie about it and they actually wrote down a six. now, you know that they cheated. are you going to do business with that person? it's got nothing to do with your business. - well, no. but they aren't too smart, either, because that's an easy one to spot, right? - yeah. i really think that for effective leadership, there is a time context and a framework, and it's almost like gravity. if you look at those of us who are sitting here today on the earth,
we are subject to the gravitational pull of the earth. - mm-hmm. - but if we were sitting on the moon, we would be subject to the gravitational pull of the moon. - mm-hmm. - the only reason that the earth's gravity has been overtaken by the gravity of the moon is not because the earth's gravity stopped, but another gravitational force became more important. - mm-hmm. because we got closer to it. - we got closer to it. to me, a really effective leader has to know when, "hey, i'm no longer on the earth; i'm now on the moon, and i am subject to a different set of gravitational laws and business laws". different pull and push. one of the key, key components of leadership is to know when to step down. - yes, i couldn't agree more. that is something in common with politics, isn't it? - not if you check... - many examples come to mind. - well, i can think of a few who... maybe we should have told
them it's time to step down. i don't think that charisma is really what we should be looking for in our leaders. there is a charismatic component to leadership... i remember, not too long ago, one of my students was bemoaning--it was right after obama had been elected. and i had roméo dallaire in my class on leadership. - a war hero. - yeah. and the student was bemoaning the lack of charismatic leaders on the canadian political scene. and roméo said, "i don't think that's a problem, because if you have a charismatic leader, you tend to find that it's easier to be a follower than a leader, it's easier to be a believer than a thinker, so, how nice it is to have a charismatic leader who will do everything for us". he said, "what this generation needs is a charismatic cause". - hmm. - and when you--that generation that's represented by my students--29, 30, 31 years old-- when you guys find a charismatic
cause around which you can coalesce, a leader will emerge. - and leaders generally have a lot of scars, they've been through a lot, and to get back to our entrepreneurs, how do you find that they deal with the big setback. the big setback being, maybe, bankruptcy, or quasi- bankruptcy, or refusal by a bank, or something like that. you know, the wall. how should they act and how do they act? - i think that we tend, almost subconsciously, to define entrepreneurship as something which ultimately succeeded. chances are, it did not succeed uninterrupted, and so they, when they came up against the wall, did react by saying, "okay, i'm going to start all over again. i'm going to change direction instead of giving up". - that's a tough... that's a mysterious thing, not giving up. we know the churchill... the famous speech, and we know all those things, but look at ross perot, as a matter of fact. he used it and then gave up. then came back, and when he came
back, he was never the same again. it's a very tough thing to pick yourself up from off the floor. teddy roosevelt, the famous quote, in the arena, you know, the man in the arena. is it just character? you can't learn that. or can you? - um... it's not a question of learning it by going to a textbook and reading chapter 14. "now i've memorized the formula, or the phrase. now i'm a leader". no. leadership comes from the person, and that person is the sum of all the things they've experienced in life. and i think that the really good leaders, the really effective leaders, in almost anything that i can think of in terms of the chosen field of human endeavour, realize that life is not sequential. "a" does not automatically precede "b", preceding "c", "d"... it could go off on a tangent. it could go to "z". it could go to the greek alphabet. it could be whatever. if you look at, to me, one of the great talents that an entrepreneur should have is what i call connecting the dots.
if you are lying on your back in the middle of the namibian desert, and you see all these magnificent stars up there, that's stargazing. you start connecting the dots--same stars--and you have constellations. - it's astronomy. - it's astronomy. same stars, but you've connected the dots. and when that comes up above the horizon, you know it's time to either plant the corn, or cook the goose, or whatever you do in namibia. so-- - so you have to think hard... think harder... - yeah, but i don't think that these guys look on it as thinking hard. it becomes second nature to them. they're perfectly comfortable with a lack of predictability, and i think that's a very real attribute that an entrepreneur has to have, has to foster. and has to, obviously, have a tolerance for making a mistake. - could a good entrepreneur... i remember once talking to somebody who advised them, and
he said, you know, a lot of them are scared that... it worked the first time. secretly they think they were lucky. they won't admit it. but they'd hate to have to start over, because they probably don't think they could do it over again. can a really good one do it over and over? sure. i really think they can. now, with the passage of time, your level of energy and your ability to retain the facts or to look at things tends to weaken. but again, if we start drawing--and i use that word advisedly--drawing on another discipline: art. i look back on the two greatest of the victorian animal artists, archibald thorburn and joseph wolf, who complained bitterly to their art students that when they were younger, they saw too much. - hmm. - as they got older, they didn't get lost in the detail; they saw the bigger picture. and i think that's one of the things. it's an unhappy balance, sometimes, between the bigger picture and
getting lost in the details. and it's that need--that almost bipolar need--that would indicate that, as a company starts to grow, you can't continue to do it on your own. - you have to develop judgement. - oh, absolutely. yeah. - and how much ego... i mean, entrepreneurs, again, because of the self-confidence, you think of them as having big egos. should they hide it? stifle it? they certainly shouldn't let it run amuck. that's never good. - there's nothing wrong with ego. the only time that ego is a real problem is when it becomes more important than anything else. that's when you start getting into the not invented here factor: "my way is the only way. your ideas suck, because i didn't come up with it. my way is automatically better". and that's when ego becomes not a three-letter world, but a four- letter word, and you've really got to watch out for that. but i don't think that the really great entrepreneurs suffer from a lack of ego, but they don't suffer from too much ego.
- they don't, eh? because they often give off that impression. you know, just from the brash... - yeah, but they're the guys that get the media attention and get the newspapers, but 85, 90-- pick a number--percent of the companies in canada that have less than 10 employees... ninety-five percent of the companies in canada have less than 10 employees. - that is... i didn't know that. - yeah, so, they're entrepreneurs. - yes, by definition. - by definition. so, not all of them have a chance to sit in front of the camera. - and not all of them would want to, either. that's a... - no. right? - how much advice should they be looking for? you've been a mentor to young entrepreneurs for many, many years. it takes, i suppose, a certain humility-- you know, especially if you've started and you seem to be doing well--to admit your doubts and to go look for advice. - uh... it's a very interesting question, because there are lots of different kinds of mentors.
one of the best types of mentors is you yourself mentoring somebody else. everybody you know can do something better than you can. and you can do something better than anybody else that you know. so even though you're just starting off, there are people who could look on you as being a mentor, and it's not a bad idear involvement with civil society, or whatever it is, to see how other people do things in different contexts. now, if, for whatever reason, you don't have any qualms about going to the public library and getting a book of portraits by josuf karsh and ripping out the pictures of--pick them--ghandi, albert schweitzer... - churchill. - churchill, right. jfk... i don't care, anybody you want. and stick them on your wall. ask yourself: how would they have reacted to those questions? or to this opportunity? and i actually know of a guy who did exactly that, who became a very successful entrepreneur. he wasn't welcome in the local library after a while, but... - but, actually, that is
actually fun, to do that. - it was fabulous fun! absolutely, so his mentors-- he had the best mentors in the world. - so, david lank, good luck with the aga khan. - um, can i leave you with one thought about the aga khan, who is quite a remarkable human being? he is building a new facility in arusha, a little town in east africa, headquarters for the international courts of justice. and on a hand-painted sign on wood, it said, "welcome to arusha, the geneva of africa". well, i don't think they checked with geneva on that one. but they're starting this new university with an entrepreneurial component, and in their mission statement, they said, "it is our mandate and our challenge to train job creators, not job seekers". and that's what entrepreneurship is all about. - indeed. well, thank you. - you're very welcome. - and, once again, good luck