Prague - 2005
Relfections
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Czech/Prague is a very nice place with wonderful architecture but a history that certainly was difficult to endure. People and industry are still effected by communistic past though moving clearly in a direction of capitalism (most businesses are privately held and few people are investing in businesses). Some businesses have not evolved to embrace lean/efficient/safe manufacturing principles (i.e. Bohemia Crystal) where as other are certainly heading in the direction of world class (i.e. Thermo King). The local capital market is struggling which will limit industry growth.

It was interesting to see examples of state of the art operations (Thermo King) as well as less than state of the art operations (Bohemia Glass). The management presentations provided insight to the operations and the competitive environment. I enjoyed the discussions about competition and the unique dynamics of each industry. Discussions on the transition from communism and how it affected business and economics were particularly interesting. However, it would have been valuable to get together as a group after each business tour and critique their operations - there were definitely differing opinions on the effectiveness of the various operations (particularly 2N), it would have been good to find out the reasons for the differing opinions. Culturally, having local personnel that are familiar with the history and culture as guides really added value to the experience. Also, having free time to roam around was good. We visited the Museum of Communism and the Museum of Medieval Torture . Combined with the Terazin tour, we got a grim view of the capabilites of society - some found it depressing. The best part of the trip was spending time with classmates and getting to know them better.

My Czech Perspective:

The opportunity to visit The Czech Republic in the manner we did was both intriguing and unique. Business-wise, I felt that this country has a lot to learn, but has done a remarkable job considering the short amount of time it has been a free-market economy. They have attempted to adopt many of the supply chain approaches such as Five S, Kanbans, and calculating takt time to be more efficient. I don’t think they have quite grasped it, however. They may use the terms, but the lines did not appear to be too efficient in some companies (i.e. 2N Communications and Bohemia Glassworks). I fear that many of these companies are living well currently, but may not be adequately preparing themselves for the future of their economic and cultural evolution. On the surface, they have attempted to market themselves as an attractive country to invest in (i.e. Czech Stock Exchange), yet with only 7-10 companies publicly traded via e-mail and many companies listed, yet unaware of their listing, something doesn’t seem quite kosher. I feel that this country will continue to rapidly evolve in the years to come because it is an attractive area for commerce, with its central location within Europe and close ties with both the East & West.

Culturally, it was an eye-opener for me. Although I have traveled to other countries, never have I been to a former communist country. I did not fully understand the impact of 1989 until we visited the Museum of Communism and watched a video of the people demonstrating in the exact square that our hotel was on. It was then that I realized what they had endured for so many years and was humbled by the sight. I noticed how quiet and reserved many of the people are and asked Maty, our tour guide to explain. He stated that Czechs are less apt to speak out or question the status quo, especially in educational arenas, because that is culturally how they were raised. Many of the current teachers are the same that were teaching under the communist regime, so change is slow. Signs of growth and change are evident across the land, with castles and cathedrals been resurrected and homes being beautified. This country will continue to define itself, as the people learn to experience their new freedoms.

The 2005 trip to Prague was a fantastic learning experience. First, the lecture from Dr. Evzen Kocenda from CERGE was particularly insightful. Dr. Kocenda was able to convey, from first-hand experience, the political and economic changes that the Czech Republic has experienced during the rise and fall of the former Soviet Union . Next, it was interesting to see the differences in Czech businesses and U.S. businesses. The safety issues at Bohemian Glassworks were incredible. At Ingersol-Rand, they are dealing with many of the same issues that we deal with, such as Sarbanes-Oxley. And at the same time, they must deal with different social issues particular to the Czech Republic , such as absenteeism. Finally, to see first hand, the cultural impact of freedom was an awesome experience for me. To be able to see the Terezin Labor Camp and to stand in Wenceslas Square where the Velvet Revolution took place in 1989 were experiences that I will always remember. It is incredible for me to think that the Velvet Revolution took place just 16 years ago in the same square where the Czech people were celebrating their World Hockey victory on Sunday night. To summarize, the entire experience was incredible and well worth the financial and time commitment.

I did not know what to expect from Prague . All I had heard was of it's beautiful architecture, narrow cobblestone streets, and great Pilsner. But I must say, the culture differences were evident upon arrival. The communist influence still persists today in the actions of everyday citizens, even after the Velvet Revolution not so long ago. Taught to learn material without opinion in school, the timidness of the Czech citizens was noticeable in everyday establishments, including restaurants and pubs. Loud were the Americans, Germans, Brits, and tourists that inhabited these places. Service was polite but curt, and very quickly did we learn to order multiple beverages and food, for regular service was not an accepted practice, nor was tipping. The shift toward capitalistic behaviors and desire to accept these practices was evident in the number Americanized shopping and various restaurant establishments.

It was noticeably different from factory work in the U.S. that the Czech people receive monthly payments for work performed in homeland factories. Further, the lack of OSHA/safety type measures as compared to what we have in the United States today was extremely noticeable. Lastly, the average monthly income of Czech citizens ($484 /mo) was very different than what we were used to, a cultural shock in it's own right. Seeing these differences and experiencing the end of a fixed economy gave a perspective that, as managers and students, you cannot derive from history or economics text books.