Final Reflections - Europe Family Business Tour

It is Monday and for the most part we are now back in Edmonton after a long 48 hours of travel. We have left the old continent for the new only to arrive home to discover that snow in May isn't as preposterous as we had believed. All the more, it is a great incentive to look back on the past two weeks and reflect on the fun, education, and experience the class gained by seeing Europe through the lens of family business.

We lost about half the students that came over to additional travel: to France, Spain, Greece, Poland and other destinations where students from across the globe come to see the world and learn about themselves in the process. The other half - which would include me - will be back to work on Tuesday. For those who are still on the road I know that they will already have some advantage as they have gained a new appreciation for Europe's history and the subtle importance that family business plays in all economies. It may not get them a cheaper hostel, but they will likely have a deeper respect for the family who has been running it for the past four generations.

It was really great also bringing the big green "A" with us through Europe. It must have seemed strange to everyone at the beginning, but based upon the customs officers, priests and security guards I had to explain the purpose of the "A" to, it wasn't too bad. I hope we can incorporate the "A" in future publications too - it will show the world that Alberta is a global business school.

When I am asked about the top five things I will remember about the trip, I struggle to come up with a comprehensive list. I listened to people talk about BMW and Merck, about Strassbourg and Munich, about the European Business School or the European Central Bank, the river tours and castles and breweries and put them all down as considerations. But in the end I think like most great experiences it doesn't come down to just the "what" but the "who". I think about what made this trip and I'd say it was the students and the professors who came with me.

Thank you all (and apologies on spelling): Isaac, Alex, Melissa, Chad, Neethanut, Ani, Mark, Chris, Zophia and Kathlin, Luke and Ali, Barb, Roshanne, Mahdoo (Lao san ai!) and Clay from Fort McMurray, Ross and Mohamed, Bryan, Ha and Adam-o!, Aarbhi and Adria, Gugandeep and Skylar, Sikandar, Chantel and Steve (who is off to London with the best job ever) and my roommate Doug. I squeeze you all in to my top 5 which beats every other list I can think of. That said, I remind you all of the blackmail pictures I have on you (and you on me) - let's not see any of that on Facebook. On the other hand, it's those same experiences that would probably make the next top 5...

Thank you all who have followed along as well and thank you to the National Post for being so kind to promote the University of Alberta European Family Business Tour. And a special thank you to Dr. Peter Jaskiewicz and Dr. Lloyd Steier for escorting our class through the backroads and sidetours of family business. We very much appreciate your patience and your thoughtfulness.

Signing off .....Mike

Castles, churches and my high school French

Traveling through a foreign country can be humbling. When you are out of your own element the easiest conversations can be inconvenient at best and disconcerting at worst. I have spent the last 12 days cramming in vocabulary and phrases in my head to get by in Germany just so I won't look completely rediculous ordering a beer or gummi bears. However, I was excited today because we would be heading to our third country on our tour - France. No longer would I be some tourist with no understanding on how to pronounce letters that don't exist in english like this - "ß". After all, I am Canadian and I do belong to a bilingual country. Unfortunately I grew up in Alberta, so that means my exposure to french culture was limited to "CBC - Ici Radio Canada" (which still has the best jazz program) and my seven years of non-immersion French. It may have been since 1985 since I conjugated a verb but I was looking forward to at least being familiar with what an accent ague was. Finally my french education was going to pay off.

On our way to Strassbourg, the tour took a short trip to Castle Neuscwhanstein, the famed Cinderella's castle that Disney used in their iconic logo. I was pretty excited to see it as well, because I had never been to a castle before. After a significant climb up the hill we shared a lunch of traditional German dumplings and sauerkraut. It was here too that my German language skills really paid off as I was able to fake my way through the entire lunch without English.

Inside the castle itself no pictures were allowed but it did not diminish the interest of seeing this amazing monument. The castle was built by Ludwig II, Bavarian King and lover of swans. Throughout the swan motif is prevalent, from door handles to bedposts, and the opulence was likely why Ludwig is most famous for bankrupting Bavaria. The highlight for me was the throne room and the Byzantine chandellier that was shaped like a crown. I suppose you could say that his was a family business that ended with him - another historical lesson in succession gone awry.

We arrived in Strassbourg as the sun set and we had the evening free to explore; the next day we would take a boat tour of the canals of the city. Strassbourg is particularly famous for a cathedral that dated back to the 7th century to the time of Charlemagne. Some of us decided to see it first hand by paying our 3 euros and climbing up to the top of the building. A rapidly spiraling staircase with over 300 stairs led us most of the way up to 500 feet, we were awarded with a beautiful view of the entire city.

Strassbourg has the added fame of being the centre of the Alsace Lorraine area of Europe, a historical hotspot for political intrigue that was most recently at the centre of attention in WWII. As part of the reperations, Germany gave up the lands of Alsace to France. I learned not to mention the Lorraine part (I was told the French don't appreciate it) but you can still see the significant German influence in architecture and culture. During our boat tour where the Ils and Rhein (or Rhine in English) rivers comingle we saw building after building of Bavarian style.

In amongst the history, the churches and the canals exists another wonder within Strassbourg - the European Parlaiment. As we traveled by bus to its home I wondered whether this too would be housed in some ancient hall or cathedral long since transformed to another purpose. But I was definitely mistaken. The European Parlaiment was as modern and interesting a building as was the BMW headquarters - rich with symbolism and artistry circa the 21st century.

The European Parlaiment was the final educational stop of our Tour. We had finally closed the gap from where we started in corporate governance, traveling through family businesses both large and small to the overriding political power that ensures that laws between nations are both fair and upheld throughout a complex mix of nationalism and tradition. Being in a parlaimentary system I think our German administrator was surprised by our knowledge of how their system operates. On the other hand the EU is a marvel of democracy and bureaucracy and it is amazing that it even works at all.

As we traveled back to Germany, I am looking at the photos I took and reflect back to the memories of Strassbourg. France will be on my "must return to visit" list for certain.

I Love BMW

By Guest Blogger: Roshanne Sarty -- Tuesday, May 12, 2009

Today we visited BMW’s head office in Munich. I had been looking forward to this part of the tour since I registered for the trip, and the famous German automaker did not disappoint. The visit included a tour of the BMW production facilities and the BMW World showroom. The production facility tour literally blew my socks off and showed BMW’s commitment to quality, innovation, and technology. I had the opportunity to visit the GM Shanghai plant in China during the 2008 MBA China Study Tour, and the difference between the plants was like night and day. The BMW plant was much more advanced than GM both in terms of efficiency and technology, and thanks to my recent ‘Operations Management’ course this winter, I was able to fully appreciate the high level of customization at the BMW plant as compared to GM. While Shanghai pumps out standardized models of vehicles that sit in inventory and eat away at profits, the Munich plant produces customized vehicles based on individual customer orders and follows a Just In Time (JIT) process. There are 200,000 vehicles produced in the Munich plant each year (the 300 series sedan and touring models) with only 1.5 of those vehicles being of the same type. This level of customization is unbelievable and BMW is able to make final customer changes to each vehicle up until the last moment.

Following the plant visit, the tour of the BMW World showroom was equally impressive. The building itself is an architectural beauty and was designed with the concept of speed and air in mind. There is a ‘cyclone’ portion of the building that is shaped like an hour glass from the outside, while the massive interior has a ceiling that represents the clouds in the sky. There is no way I can describe in words how impressive the building is, and the attached pictures don’t do it justice either… so the only way to fully appreciate this facility is to see it in person. One way of doing this is to order a BMW and pick it up in Munich, an option that BMW offers to its international customers. The basic idea is to travel to Europe, hop into your spanking new beamer in Munich, travel the European roads in style, take advantage of the country’s lack of speed limits, and then have the your vehicle shipped back to your home town. Sound enticing? You bet it does. Who wouldn’t?

BMW met and exceeded all of my expectations and left me with a serious case of car envy. Now all I have to do is figure out a way to trade in my 1995 Ford Probe POS for a shiny new Beamer. Guess I’d better start saving…

"Angels and Demons": Private Equity Firms in Europe

Monday the Alberta students we were back in class at the Technische Universitat München or TUM for short. The university system in Germany is actually quite interesting in that business degrees are only recently offered. German students take three years of engineering and then another two years of business related studies. Their semesters are longer than in Canada as well, from August to May, with 100% final exams that are taken over an eight week period. In the end they have a five year degree which can be considered the equivalent of a technical MBA and they have more exposure to engineering and science in business than Canadian students do.

We had two TUM representatives providing lectures today, Assistant Professor Eva Nathusias and PhD student Stephanie Schauml and their topics of discussion revolved around Private Equity firms. In Germany, the public attitudes towards private equity firms are more critical. Because family firms are so prevalent in industry many labour unions are leery of these firms obtaining a controlling stake and then deconstructing the operations, often shipping jobs off to cheaper foreign labour markets. I didn’t know this but in Germany if your company is over 500 people you are legislated to have a union shop to protect workers’ rights regardless if the business owner desires the union.

The lecture was about whether Private Equity firms are “angels” for providing expertise and capital or are they “demons” for draining value from profitable firms by seeking efficiencies through labor or operations. German firms are closely tied to their communities, much more so than in North America and because of their historic social, political and financial culture companies have avoided jumping into the PE pool with both feet. They often also exhibit low debt levels and high equity amounts, making them attractive targets for PE raiders. The PE firms buy out families and then transfer the debt they used to buy the firm onto the balance sheet and in essence obtain the firm for free.

With that in mind, Stephanie provided some insights into a new paradigm that is evolving around Private Equity taking a minority stake in family enterprises. Her recent studies found that there is some appetite for giving up a piece of their equity in order to secure capital for growth, extract wealth from the business, or simply bail out of a bad financial situation. In general, non family business matters and financial matters impact the desire and limits to which family firms are willing to trade part of their business to PE firms in distinct ways. She elaborated on several types of family businesses and how they differ. It brought to light the fact that PE firms are becoming more accepted in Germany and that the successful ones are considering family culture along with return on investment – quite a shift from what I would have guessed.

In the afternoon, we shifted gears again with a lecture from our own resident expert Dr. Lloyd Steier. Lloyd was recently cited as the world’s number one published academic leader in the realm of family business and it was a great treat to hear him talk with passion about his experience with family business from all over the globe. Using the idea of “ZOOMING” all over the world, he provided great insights in to how the world may have different cultural differences, organizational structures, and different approaches to society, but there is one unifying characteristic that every country shares: the importance family business has on the economy. His point was that the world isn’t so different, and that the conflicts from family to family, from country to country are not so unique. It made complete sense to me: why would sibling rivalry be different if you were from Turkey or Canada? Mothers are still the emotional CEOs, and family members are almost always the source of that first seed money for the budding entrepreneur. But what impressed me most was his passion for the subject. It’s easy to be interested when you see how excited your professor is on the subject he teaches.

As I have mentioned before, the days may be about studying but cultural experience is important as well. Tonight we experienced the epitome of Bavarian culture – a visit to the Hofbraühaus. For those who aren’t familiar with it, this three storied building hosts the largest and most famous beer hall in Germany. I was told over 1,000,000 people come each year to Octoberfest, and the Hofbraühaus is at its epicentre.

Unfortunately, what happens in Bavaria stays in Bavaria so I can’t get into more detail. There was a live Oom-pa-pa band, all kinds of sausages, schnitzels and savory dishes and big glasses. Fun was had by all.

Tomorrow we head off to the BMW headquarters – a big highlight of the trip. One of my friends Roshanne Sarty asked to guest blog for tomorrow so please look out for her perspective on our next day. ~ MH

Mothers - the Family CEO

Original date of writing - Sunday May 10th, 2009

Today is Mother's Day and the Alberta Tour is in Salzburg Austria for the day. The irony is not lost on me that here I am in Europe, studying the family construct of businesses that make up the majority of the world's great economies while my own wife Kathy is at home with our two young girls. But that is the essence of what moms do - they sacrifice, they nurture, they enable - in short they are the CEO - Chief Emotional Officer - of the family.

I can't take credit for the idea of mother's being CEOs; this was actually something that was taught at the European Business School in one of our lectures. We learned it is the wife that often outlasts the husband, and she will act as the peacekeeper, the human resource director, the principal influencer and the controller of family assets. When the children take over family enterprises or when other relatives are involved the matriarch is often the linchpin that holds not just the business but the emotional architecture together.

But back to Salzburg. The city has a rich and involved history, dating back to Roman times when it was the centre of the Salt trade; in fact this is where the city gets its name. As close as it is to Germany (a three hour bullet train ride on the system the Germans call ICE) Salzburg has a feel that seems different from the other German cities we have visited.

Today we saw hundreds of families in lederhosen and traditional skirts celebrating their Mother's Day in the manicured parks and gardens, among some of the most important historical and beautiful architecture I've ever seen. In the afternoon we took a guided tour of the city, wandering the narrow cobblestone streets decorated with iconic signs announcing various trades and crafts. Salzburg is the city of birthplace of musical geniuses Mozart and Hayden, and of towering cathedrals that are decorated with gothic and rococo influences. The oldest restaurant in Europe is here too, named St. Peters which dates back to 803 AD. Supposedly the food is still good even after all these years.

Our day is filled with other activities too include a bus and walking tour that highlights various locations used in my wife's favourite movie "The Sound of Music". I took pictures of the gazebo where Maria and Captain Von Trapp first kissed, or when Baroness Schroeder sees the kids coming out of the lake in curtains for clothes.

Perhaps the most prominent scene in Salzburg is Europe's most impenetrable castle the Hohensalzburg Fortress. The fact that this was built in 1077 AD is astounding. We took a tram up to the base of the castle and then walked several floors up to get to the courtyard area. From the mountain you can see everything, including the Alps where the Von Trapps escaped to Switzerland.

As I rode the train home I wish my own family CEO was here to have seen Salzburg. Certainly she is the glue that holds us all together, regardless of what kind of business I get into. On behalf of everyone here who is missing their own moms in their lives, we all wish you "Alles Gutte dis Motters Dag...Happy Mother's Day".

Mainz to Munich

Today was a day of travel between Mainz and Munich and we are riding the train at the moment, so I thought I’d tell you about one of our “cultural fieldtrips”. I don’t think it’s a stretch to imagine this but traveling to Europe with a group of students may include an occasional sampling of local food and beverage.

After wrapping up a great stay at the European Business School and finishing up our presentations on Grohe we spent our last night heading to one of the regions oldest breweries in Mainz. We took the train back to Wiesbaden that night and in the morning we headed to Munich for the next part of our European Business Tour.

In Mainz, we discovered that the brewery is in fact a family business, one that has lasted a few generations. This is pretty typical throughout the wine and beer region and it has its roots in the church. For example, the monks of Kloster Eberbach started producing wine and beer because the water couldn’t be trusted at that time. Even in Roman times, when soldiers were posted in the region in early 400 AD, centurions were paid with three litres of wine each day. It makes you wonder how they could stand up let alone soldier but I’ve been told the alcohol content was fairly low. But we were there not to discuss Romans, but to sample a traditional German feast and to enjoy two traditional beer experiences: the “Yard” and the “Tower”.

I can tell you that the food was delicious and it is truly a wonder that the Germans are not the largest people on the planet. The “Pigs Knuckles” sound revolting but in fact this is a translational issue more than anything. The “knuckle” is more like a leg shank and in order to finish this gastronomic platter you have to have skipped a few meals first and bypass the salad bar. I had traditional schnitzel whereas others sampled the goulash and bratwurst.

We took a tour of the brewery, learned about the process of fermentation and then got back to sample the Yard. This is actually 8 little glasses of beer where your table could sample the different types of flavours. The other thing that I hadn’t seen before is the Tower – a giant tube of beer with a spigot on the bottom where a table can share a glass. I liked them both very much. Others liked them even more.

I’m hesitant to speak further about the evening except to say this was a wonderful team building exercise. We learned a little German – Du ist wundeshien – you are beautiful – and the younger guys in our group were encouraged to practice on the local students to see if it helped in “building cultural bridges”. I can say unequivocally that it didn’t work that well, but it might have been the accent they used. Still, they will undoubtedly keep trying with these new experiences under their belt. ~ MH

When Family Business Gets Personal

The past three days I haven’t been able to get much down on the blog but I have a good reason – we’ve been in class. Yes, in fact, traveling to Europe includes two visits to two different universities, 40 some hours of lectures and case-based discussions and presentations. Sure, you get to see the Rhine River while you are studying, and the lilac scent wafts in the air, but it is studying nonetheless. We’ve been at the European Business School (“EBS”) just outside Wiesbaden where we were surrounded by southern facing vineyards and buildings dating back to the 18th century.

We worked on two cases including one on the Wella Family and had to prepare a presentation on the Grohe Family. Grohe is a very successful German based bathroom fixture manufacturer that was forced into a sale by an American Private Equity firm. Once the Americans took control, the company faced several issues related to local labour issues as jobs were transferred to Thailand. What was interesting about this case was that it was quite influential over national German politics and the debate over foreign investment of large, faceless private equity firms ultimately became a campaign issue. But it wasn’t all work, as we managed to squeeze in a tour of the European Business School’s wine cellar in the evening. I have to say the U of A could benefit from some sort of cellar/seller of wine arrangement. (The Assistant Dean, Development should look into this more!)

In attending the lectures, you see how complex and important family businesses are to the overall economy. You can also apply what you learn to your own situation even if you don’t have a family business. Who among us won’t face a potential sibling, cousin rivalry over the family farm, or a house, or the family candlesticks? Multiply that on a scale of millions and the gap between “complex family enterprises” and your potential family issues narrow rapidly because families really do face the same issues. But hammer home the point, Dr. Sabine Klein, Chair for Strategy and Family Business at EBS gave her lecture. And this is when family business really got personal for me.

Sabine generously offered up her own story, both good and bad parts including how her family dynamics worked. Her family business could be considered an iconic German success: the family empire specialized in the production of margarines, oils and fats, and frozen foods throughout Europe. Her grandfather started the business in the early 1900’s and by the time it came for her and her brothers to determine succession, it was the second largest producer of its kind in Europe.

I’ve met lots of CEOs and it is always impressive to them talk about the latest company profits. However, it is an entirely different and intensely vivid experience to hear from a member of the controlling family. Sabine showed us the skeletons in the closet, describing how politics between generations, brothers, mothers and fathers can influence and impact succession of an international firm. As Sabine said, family business is more intense because you can’t quit your family and you can’t divorce your mom or brothers.

The expectations on what happens when a succession issue can be emotionally raw, intensely sensitive and bring back elements of past interactions that at the time were harmless and even loving. Once succession is triggered however the jealousies, the rivalries, and the unique personalities rule much of what happens next. Sabine’s most vivid point for me was that the health and happiness of a family is dependent on every member being happy, and that when one member is hurting all members hurt. The impact of ignoring this can tear families and businesses apart and once successful legacies can evaporate in short order.

I can’t really describe this lecture fairly. I can say I felt very privileged that Sabine was willing to share her tale, and to use it as a backdrop to apply what we’ve been learning over the past few days. I also look forward to hearing her lecture again and she will be at the U of A in the fall so I won’t have to wait too long. In the meantime, I may send my brother and sister an email – just to let them know I was thinking of them. Seems like a good thing to do in the context of the past few days. ~ MH

News on the blog

I suppose everyone has 15 minutes of fame. Mine has come in the form of this blog. The National Post was kid enough to promote the blog on their site http://www.financialpost.com/executive/story.html?id=1569121

As well, I have created a facebook page for those who are interested in seeing some photos from the trip. I will be honest - everyone says they will download their photos but we're all distracted with the classes the past three days and so there isn't much up yet. The group is called the U of A Family Business Tour to Europe. Check it out! ~ MH

The European Central Bank - ECB

Last September I sat in the back of the class in Economics 501, the first time in many years since I'd even thought of a demand curve. At the time I figured I was in trouble - my last experience with an indifference curve had been, well, indifferent at best. During the semester Prof. Dick Beason raced through such advanced topics as fiscal and monetary policy, the impact that interest rates have on consumer demand, the M3 money supply (a way to define cash out there in the system) and where the Bank of Canada plays a role in all this. I wasn't lost by the end, but I figured that my reintroduction to economics was more of a dip in the pond rather than swimming a the full leg of the triathalon.

So imagine my happy surprise when we get to the 36th floor of the European Central Bank and Nils Bünneman from the ECB starts launching into a presentation on monetary policies of the EU. I found myself not simply bobbing with waterwings - I was actually prepared to jump into the deeper water without goggles!

This is the highlight of the trip for me so far. The ECB is in Frankfurt, the heart of industry in Germany some would argue, and Peter had arranged for our little group to be treated like true diplomats. After passing a rigorous screening process and a security guard patdown, we headed to the top level to the actual room where the ECB determines the best course of action to ensure there is price stability. The decisions of the 16 members of the ECB General Counsel impact all 27 EU member states and represent approximately 475 million people.

I have to say being in the room felt a little like being at the United Nations (or so I would guess). The table was expansive and round, and here we were talking about the actions of one of the world's largest banks. At one point Magnus Arnasson from Sweden took over, a PhD in Economics who worked at the ECB and he described how the rate free interest rate and the premium rate impact the volitility of the Beta, how Fisher's model for determining Dividends paid comes into play (Div next year/discount rate - growth rate for all you finance nerds) and even mentioned how net present value calculations are determined by cash flows that are discounted back in time. We just took that in Finance 501 - how cool is it that my education would be so relevant so soon after exams?

Similar to the FED or the Bank of Canada, the main purpose of the ECB is to implement monetary funds, hold foreign reserves, and manage smooth payments between banks. But instead of the banks being intercountry only, they deal with various nations and their own very different needs. All this activity ultimately leads to price stability - a big thing for Europeans who have seen hyperinflation within the last hundred years.

So why is all this important to family businesses? Smarter people than me can argue why, but I think it's because most European businesses are family businesses and this drives the economy's engine. These companies rely more heavily on banking to secure capital than in North America where most capital is obtained directly in the free market through stocks. As a result, the banking system needs more intense coordination and the benefit is that this diversified blend of economies helps stabilization.

Anyway...the trip was a good one and you can tell I was jazzed by what they were talking about. We took some great photos of the ECB and the Bull and Bear outside the stock exchange too. I'll try to get them up as soon as possible. Tomorrow we head off to the European Business School for the beginning of our lectures. Yes! We do actually go to class on the trip. ~ MH

A Real Family Jewel - Merck KGaA

When I signed up to go on this trip there were a few in my family that may have had some doubts as to the validity of this exercise. "Studying family businesses in Germany? Sound more like something you say to justify buying a month -long Eurorail pass." But after toda's visit to Merck headquarters in Darmstadt I can assure all parents, spouses and mother-in-laws that we are getting some amazing exposure to corporate governance education.

Today we spend 5 hours at Merck, starting with a lengthy discussion with a high ranking member of their Family Board, Mr. David von Klackreuth. He generously flew down from northern Germany to spend the day with us and share Merck's story of success over the past 12 generations of chemistry and pharmaceutical dominance in Europe and internationally. There are over 219 members of the Merck family that are actively holding shares. These family members own 70% of the company's value. Not bad for a company that had sales of $7.6 billion in 2008. In fact they are so big, that even with only 30% trading out in the market they are still part of the DAX (Deutche Exchange) Top 50 index.

Merck headquarters cover over 1.2 square kilometers and just at this site alone there are over 8000 employees (over 32,000 worldwide) and 450 buildings, some dating back to the 18th century. The scope of the company is vast adn it seemed like every time we went somewhere they told us of another innovation they had discovered or implemented to become more effective or efficient.

The tour of their warehousing facilities for potentially dangerous chemicals was a highlight for me. You'd think we'd be in danger but the warehouse is almost completely automated. They have six stories of warehousing where each combustible chemical is separated from the other potentially bad chemicals and these automated forklifts come and select just the pallet they need. It's right out of science fiction novels. By being automated they mitigate most of the risk for employees too.

Merck's products have an impact on our daily lives that I had no awareness of too - whether it's cancer treating beta blockers, or liquid crystal manufacturing for our cellphones or even cosmetics or vitamin C, the company seems like they do most everything.

In the end though it was the family, the values that they embody, and their vigilance to those values remaining the backbone of corporate culture over 12 genreations that impressed me the most. Their approach precipitates life long loyalty with employees and pride in work that seems missing from north american companies looking for increasing their quarterly returns.

We weren't allowed to take pictures anywhere, but we did get one photo with Mr. von Klackreuth and the "A" + group. I suppose sometimes family secrets are best kept when they are held as treasures and shown only in rare moments. We felt like we got a glimpse of that today.

On the Rhine - Steep Incline - Monks with Wine

(Note: I will be adding more photos as time goes on but the battery on my camera died in my first day here).

The first full day in Germany was beautiful. The sun was shining like a bright July day in Edmonton (but this is May) and to ease into our jet lag Professor Peter Jaskiewicz (Peter from now on) had organized a boat excursion down the Rhine river originating in Rudeshiem. The "A" was now being fully adopted by the group and we took it to its first fully Germanic tourist trap - the Drosselgasse. This narrow street reminds me of Harry Potter's Diagon Alley with shops lining its narrow passage as you are targeted for sales of postcards, coo coo clocks, and german chocolate. I narrowly escaped with only a few Christmas ornaments in tow.

We shuffled between ice cream parlors and "gasthauses" (restaurants) back to the docks where we boarded a ferry that would take us from Rudeshiem to St. Goars. It was a relaxing, fun time and along the two hour tour we saw examples of 12th and 14th century castles along the way every 15 minutes or so.

Roshanne and Barb in Rudeshiem

We docked at St. Goars along the famous cliffs of Loreley where legend tells of a young maiden with a golden voice. She would sound so beautiful and look so lovely that ship captains would run their barges against the shoals just to get a closer look. It was here that Peter suggested a short climb up the cliff where we would have a wonderful view of the Rhine and we could grab a bratwurst and some coffee or beer. It sounded lovely.

Of course the hike was a shock to many of our systems. We had been lulled into a state of sedentary complacency and now the 20 year old BComs were jogging up the hill and the old MBAs were forced to keep up. Someone offered me water upon reaching the top, another offered me a difibulator as a joke. I took the water...barely.

After gathering our breaths, our strength, and some lunch, we headed off to Kloster Eberbach, one of the best preserved and oldest monasteries in Europe. In fact it is so pristine it was used as the backdrop of the movie "The Name of the Rose" with Sean Connery. Seeing it up close and learning its history was interesting and it set a good base for what I'm sure will be a theme during the trip - Germany is steeped in history. We toured its different rooms and visited the wine cellars (which had no wine but many casks) and enjoyed learning how religion played the major role in settling the Rhine Valley - a UNESCO Heritage site.

So after the Rhine, the Incline and Wine we trundled back to Wiesbaden to rest up for a full day of Family Business studies at Merck tomorrow.

Transitioning into Deutschland

As we arrived in Frankfurt on Saturday afternoon, most of us were still feeling a bit of a shock to our systems from the time difference. Sleeping on planes has never been something I do well, and I knew that the first day was going to be one where I was up for 30 hours or more. As it turned out, so were most of my classmates.

One thing you need to know about this trip is the “famed A” that we brought. The “A” is 2 feet by 2 feet by 5 inches, made of foam, and created at our friends in Industrial Design at the U of A. I brought it to show people that wherever your degree takes you, whatever your experience, the U of A is with you too. It’s cheeky, it’s symbolic, and it has caught fire and the attention of tour guides so far. Look for the A to be our own version of Travelocity’s gnome.

Bleary eyed and yet excited at arriving without any hassle or hiccup through customs or baggage, we stepped out to humid, sunny Germany. The consensus is that a) this place is very clean and b) it is much greener and prettier than we’d all imagined. Driving to Wiesbaden we saw forests and fields of canola in full bloom, vineyards and hills dotted with 18th century towns, castles (I’ve lost count there are so many) and gothic churches rising out of a lush vibrancy of green everywhere. If this was the carpet being rolled out to greet us then I couldn’t imagine what would be next.

The first day we had time to explore, and as it would have it, Doug Matheson and I found the street that turned out to be the most popular one for hanging out. We walked for a few hours before reposing at an outdoor café for some schnitzel and beer (hey we ARE in Germany after all) we collected back to join the others for dinner. Lloyd Steier and Chantel Blanchette joined us for an hour of people watching on a beautiful Saturday afternoon.
After a tasty meal at a Cuban restaurant, the group walked back through Wiesbaden’s beautiful park. There were trees as old as time shooting up past seven stories and a large pond with a fountain that reminded me of Hawreluk Park (though not as expansive). Rhododendron bushes and lilac trees filled the air with wooded perfumes and the walk back to the hotel was a wonderful way to end the day. We walked through the Casino which is housed in a building going back centuries out to an old car exhibition that happened to be wrapping up for the evening. We posed against cars that James Bond might drive in olden days, VW wagons, Porsches and other exotic vehicles that made the first day seem pretty fantastic.

As we meandered back to our hotel, with the full European summer's eve and the jet lag still in its early stages, I think we had a pretty good first day. - MH

3 sleeps and counting...

The Europe Business Family Tour starts Friday and I'm really getting excited. It's part of a joint BCom MBA course put on by the Alberta School of Business at the University of Alberta. Of course it all seems glamorous...off to Europe? Why yes...but the intensity of my real work and the load I'm trying to plow through seems to get worse as the date of departure creeps forward. I take solace in the fact that by Saturday morning I will leave that all behind and be sipping a strong "kaffe"(I'm not German so I may have this wrong) and a ...what do Germans eat for breakfast?

The EBFT tour is based upon learning more about intenational Corporate Governance, a hot topic these days especially in light of the decline of the stockmarkets, the outrageous paychecks of corporate executives and the overall impact a lack of regulation has had on all of us. Who hasn't had their meagre stock portfolio drop to the point where we discuss our wealth in terms of the extra years we now have to work. Freedom 75 baby! Looking good.

But in Germany the system is different. The businesses are less reliant on the stock market because of the control families have retained in operating their businesses. Governments, banking systems, and shareholder rights are unique. This trickles down into what motivates management, employees and creates culture in the company.

So with a few sleeps left I'm starting this blog to record our journey. Plus I needed to post something ahead of time...I'm not saying I won't find coffee on Saturday morning, I just want to put my full effort into that.