Global Scale Talent: Graham Mackay

Talent is not limited to only one country or even a select group of countries. It’s found everywhere. We have seen people rise out of obscurity from different parts of the world.

Graham Mackay was not born in the U.S. or China but has left his own mark in the world stage. Born in South Africa, he was not the founder, nor the son of a founder of any company. He joined a company as an employee and through his skills and talent transformed it into one of the largest beer companies in the world.

Mackay joined the South African Breweries Limited in 1978, and rose through the ranks holding key senior positions in the group.  Aside from brewing beer the group was also into other businesses including hotels and something as unique as having a subsidiary making windscreens.

Mackay was appointed Group Managing Director in 1997 and Chief Executive of South African Breweries (SAB) plc when it was listed in the London Stock Exchange in 1999. While the company came from a country that faced a host of problems notably apartheid, it did not stop it from doing business in many parts of Africa and the rest of the globe.

Mackay orchestrated the transformation of the company into the number two beer maker in the world. He led a number of successful acquisitions of other companies including resorting to aggressive takeovers. Mackay also focused the company on selling beer, non-core businesses like the hotels and windscreen company were sold off.

Among the acquisitions that took place include the Czech lager group Pilsner Urqell, Peroni of Italy, Bavaria of Columbia and Dutch group Grolsch. The company became SABMiller with SAB buying 100% of Miller Brewery Company (the second largest brewer in the U.S. by volume)  in 2002. This move made SABMiller the second largest volume brewer in the world.

The iconic Foster beer company of Australia has also been acquired by SABMiller, further solidifying the company’s global presence.  In his early 60s, there has been some talk of Mackay’s retirement. Whenever that will be he not only left his mark in the local South African beer market, but also in the rest world.

Attorney Myron Cherry Approaches His Business With an Entrepreneurial Eye

Rather than taking on cases that he thinks will make his law firm money, famed Chicago attorney Myron Cherry accepts clients on the merit of their claims. Like an entrepreneur, he sees a challenge and attacks it, no matter if he’s the David to his opponent’s Goliath. A case in point: Myron Cherry and his boutique firm, Myron M. Cherry & Associates, LLC, won a $25.5 million conflict-of-interest settlement against major New York law firm Sullivan & Cromwell LLP. When United Air Lines underwent bankruptcy proceedings, more than 2,100 senior pilots believed the Air Line Pilots Association, International, did not fairly represent their interests. Myron Cherry assisted in reaching a $44 million settlement for the pilots.

Possessing another trait of the entrepreneur, a pioneering spirit, the talented trial attorney became one of the first lawyers to accept commercial cases for a contingency fee and played a leadership role in drafting and implementing early environmental legislation. His work has resulted in a page-one profile in The Wall Street Journal, a 90-minute documentary on British television, and a feature article in Audubon magazine. Also appearing in Crain’s Chicago Business and recognized as a Top 100 Illinois Super Lawyer by Super Lawyers magazine, Myron Cherry has practiced before the United States Supreme Court, numerous Courts of Appeal, and Illinois Federal District Courts. In addition to his leadership in legal matters, he teaches graduate and undergraduate students at Northwestern University School of Law as an Adjunct Professor.

A firm believer in the democratic process, the entrepreneurial attorney has remained active in the political arena over the years. Twice he sat on the United States Senate Judicial Nominations Committee for Illinois, and for the Democratic National Committee, he acted as Co-Chairman of the Democratic Business Council and as a Trustee. A founding Master of the Atticus Finch Inn of Court, Myron Cherry served on the State Justice Initiatives special committee of the American Bar Association and the Public Affairs Committee of the Chicago Bar Association.

Love Him Or Hate Him: Mikhail Prokhorov

It’s hard not to miss Mikhail Prokhorov; he is a literal standout at 6 feet and 8 inches. Any one at that height will immediately think he should try his luck at basketball. He is involved in basketball and at the highest level-the NBA but as an owner. Which means he must have lots of money; he does being a bona fide billionaire. He’s tall, single, a noted playboy, and rich; someone to be envied.

The personal life of Prokhorov is not all that happy. He lost both of his parents within a year of each other due to heart related problems when Prokhorov was in his early twenties.  At that time he lived with his older sister who was divorced with one child. Prokhorov became the family bread winner.

He happened to be at the right place and at the right time. A graduate of the Moscow Finance Institute, he worked in a well connected bank which was given good favors by the government.  During Boris Yeltsin’s time Russia was undergoing change, privatization, and uncertainty. The bank he worked for became a government depository bank and auctioned government debt earning substantial profits.

Another bank he partnered with was able to acquire a former government own mineral company called Norilsk Nickel which was huge, producing 25% of the world’s nickel. From there he parlayed his wealth into other businesses earning more billions.

He has gained some sort of international acceptance by being allowed to buy the New Jersey Nets basketball teams. He has also voiced out his intention to run for Russian presidency most likely against Prime Minister Vladimir Putin.

Love him or hate him, his intelligence, ambition, and cunning makes him who he is.

Public And Private Sector Standout

The name Lew Frankfort is not familiar to most people. As an executive he has achieved something not many managers can boast of; excelling both in the public as well as the private sector.

Frankfort held a number of positions as an employee of the New York City government. His most notable accomplishment as a public servant was as Commissioner of the Agency for Child Development. He played a big role in restoring the city’s Head Start and day care programs. This was during the mid-70s when there was a fiscal crisis. He held this position for 3 years, and served in the in the city government for 10 years.

While we’ve heard of successful businessmen going into public service like Michael Bloomberg the billionaire who became mayor of New York City, Frankfort took the other direction going from public to private sector.  Could better pay have been the reason? Whatever the case just like in the public sector he performed very well in the private sector.

Frankfort joined Coach in 1979 as vice president of New Business Development.  He made his presence felt, heading the company’s push with Coach Stores.  He also led Coach’s expansion into the international market.

Even when Coach was acquired by Sara Lee Corporation in 1985, Frankfort’s star didn’t diminish; he became Coach’s company president.  By 1995 Frankfort was named Chairman and CEO. During the Sara Lee regime, he held a number of senior executive positions in the Sarah Lee organization as well.

Frankfort guided Coach’s transformation into a publicly traded company with its listing in the New York Stock Exchange in 2000.  Under his stewardship Coach has emerged as an iconic American accessories brand from its origins as a cottage-industry leather goods manufacturer. It now has presence nationally as well as internationally.  For being a $6 million annuals sales company its sales now surpass $3 billion annually.

Frankfort has been cited in numerous occasions for being a top performing executive in transforming Coach to what it is today.  He has still kept his sense of public service by being a board member of institutions like Teach for America, whose objective is to eliminate American educational inequity.

Outsourcing Pioneer

S.D. Shibulal (Shibu) is the CEO and co-founder of Infosys.  This is a multi-billion dollar company based in India that has been pioneering in the  offshore outsourcing industry.  What helped catapult Infosys into the world stage of providing IT services and solutions was the creation of the Global Delivery Model. This set a new standard for the delivery of IT service that was outsourced. Shibu was instrumental in the development of this model. This is basically taking the work to where the best talent was available while having an economical advantage as well.

There has been a lot negative remarks about the outsourcing industry. Notably that it is taking away high paying jobs in more developed countries. The other opinion is, due to the cost structures in developed countries, companies could no longer operate profitably if they do not outsource. It is argued that it may be better to outsource than to close the company entirely and lose even more jobs. Outsourcing can also create new businesses leading to more jobs in developed countries.

The debate continues but for Infosys, the company is proud to point out that it started with seven people and $250. Today it have $6.8 billion in revenues, and is a global IT company. It provides among other services, business and technology consulting, application services, maintenance, re-engineering and of course business process outsourcing.

Shibu is also the Chairman of Infosys Technology (China). He was the  Chief Operating Officer for Infosys Ltd., from 2007 to 2011.  Shibu has held many positions in the company and has played an integral role in making Infosys a global force in the IT sector.

The Excelling Executive: Meg Whitman

Some individuals start excelling from an early part of their life and just keep going making significant contributions to the various companies they become associated with.  Meg Whitman is one such individual.

Born on August 4, 1956, Margaret Whitman’s life has always been marked by excelling in what she did. Whitman finished her high school in 3 years.  In college at Princeton, she earned a B.A. in Economics with honors. She also obtained her MBA at the prestigious Harvard Business School.

From academics to the real world Whitman didn’t skip a beat. She first worked at Procter & Gamble, and then became a consultant with Bain & Company stationed at their San Francisco office.  She rose through various positions at Bain eventually becoming a senior Vice President.

Whitman was a vice president for strategic planning at The Walt Disney Company.  She was also the president and CEO for Florist Transworld Delivery in 1995. Aside from other high management positions her defining moment arrived when she became the CEO of eBay.

It can be said that the eBay became what it is today because of Whitman’s leadership. When she joined in 1998 the company had 30 employees and around $ 4 million in annual revenue.  By 2008 when she left it had 15,000 employees and $8 billion in annual revenue.  Whitman has received various awards and accolades with her achievement at eBay. It also made here a billionaire.

After resigning from eBay she made a run for governor of California in 2009. She is said to have spent over $100 million of her own money for the elections. This is the largest anyone to date has personally spent for an election.  Unlike in her private career she was not successful in her foray into public service as an elected official, she lost in the elections.

Whitman serves or has served as board member in various organizations both for profit and non-profit. She along with her husband also have their own charitable foundation.

Her executive business skills have been sought for once again. No so well performing Hewlett-Packard has made her the company CEO starting September 2011. She also served as a member of the board from January 2011.

There are high hopes that this excelling executive will help turn the company around.

Making Tesco #1: Sir Terry Leahy

Sir Terry Leahy was born on February 1956, in Liverpool, England. Coming from a humble working class family, he obtained a Bachelor of Science degree from the University of Manchester Institute of Science and Technology. He then began his career at Tesco the British supermarket chain in 1979 as a trainee, marketing executive.

He rose through the ranks until he became the CEO in 1997. His rise was due to the successful marketing initiatives he developed which helped the company grow.  One was adopting the new two store format. The first was Tesco Metro, located on busy streets and urban residential areas, focusing on fresh and prepared foods. The second Tesco Express offered gasoline and convenience store. Leahy is also credited with the loyalty-card program for frequent customers. This was a first in retail grocery and was highly successful after its 1995 launch.

When he reached the CEO position he made further innovations such as launching hypermarkets, as well as offering new financial services. After conquering the UK market Tesco expanded overseas with presences in Europe, Asia, and America.

Under Leahy’s stewardship Tesco has had record profits since 2001 when it first breached the £1 billion profit mark. It registered £3.4 billion in profit in 2010. Sir Leahy stepped down in 2011 after 14 year at the helm of Tesco and turning it into a local and international supermarket chain giant.

Mukesh Ambani: No MBA Degree But Great Achievements

Mukesh Ambani has a bachelor’s degree in chemical engineering from what is now known as the Institute of Chemical Technology in Mumbai, India. He went on to pursue an MBA degree at Stanford University.  Things did not go as planned.

His father had a big project and pulled Mukesh from schooling. Mukesh obliged and dropped out of the MBA program to help his father. His father Dhirubhai Ambani was not a typical man. He founded Reliance Group, the largest conglomerate in India.

The project Mukesh to part in upon joining Reliance in 1981 involved the backward integration of the company’s textile enterprise into polyester fibers. This went further back into petrochemicals, and then led to oil refining, then oil and gas exploration and production. Modern manufacturing facilities which greatly increased the company’s petrochemical output were created in the process.

He is also responsible for establishing a vast petroleum refinery in Jamnagar, India. What he steered to create is now the largest petroleum refinery in the world.  The company that he now leads (with 44 percent ownership), Reliance Industries Limited, owns the largest natural gas field in the country which will supply energy-hungry India with low carbon emitting natural gas.  He is ambitiously pushing for more information and communication technology breakthroughs in India with Reliance Infocomm Limited.

His initiatives have made Reliance India’s most valuable company and the country’s first private company to make it to Fortune Magazine’s 500 list. His achievements have been noted both in India and internationally.

Mukesh is a member of the Indian Prime Minister’s Council on Trade and Industry, and Indo-US CEOs Forum among other notable positions. Internationally Mukesh is a member of the UN Advocacy Group backing the realization of the Millennium Development Goals and is on the Foundation Board of the World Economic Forum.  He is also a board of director in Bank of America, one of the largest financial companies in the world.

Mukesh never did get his MBA degree, but it really doesn’t matter given all that he has achieved. He probably employs quite a number of MBA degree holders!

Changing America

People who led the way by introducing something new and different have profoundly changed society in many positive manners. One great example of this is a man by the name of Henry Ford.  Born in rural Michigan in 1863, he would become a big factor in changing how Americans live their lives.  

For did not invent the car. What he did was devise a way to produce cars in a more efficient and faster way that would lower its cost of production. He introduced the mass- assembly line of manufacturing cars.  Instead of producing the car one at a time, it would be made in sections; parts of the car would be assembled along a line that would ultimately end up with a finished car that could be produced in 93 minutes instead of 728 minutes. It was an extremely wide difference in time and improved efficiency.

Ford did not stop there; since he wanted to make cars for the multitude he increased the wages of his workers so they would be able to afford his cars. To top this off he even shorten work from 9 to 8 hours per day. It gave more free time for his workers, but it also allowed him to have 3 shifts per day.  This was all made possible because he could now produce the Model T more cheaply.

Making an affordable car changed America forever. People could travel great distances. Home no longer had to be that near to work and vacations and leisure trips around the country became a reality.  Ford pushed for more and better roads and gas stations as well creating jobs and new enterprises in the process.

He was a tour de force in the shaping of modern America.

Enron, Hedge Funds And John D. Arnold

Enron is not something American likes to look back and think about.  Its collapse hurt a lot of people, and the principal Enron employees became media fodder. Hedge funds have not actually had the best reputation in the minds of American either.  It seems to represent rightly or wrongly a cut-throat take no prisoners approach to doing business.

One guy has been involved with Enron and hedge funds not just as a regular employee but as someone who has benefited tremendously from both. Lucky for him though he hasn’t been implicated or charged with anything sinister at Enron and seems to be doing well with his hedge fund business.

Meet John D. Arnold.  Born in 1974, he started his career in Enron as a trader. It was while working in the Natural Gas Desk that his star really started to shine.  Using the company’s new internet-based trading system he was said to be responsible for over $300 million in profits for Enron in 2001. The company gave Arnold still in his 20’s, $ 8 million in bonus for his outstanding work.

The following year Enron collapsed, but not Arnold. With the bonus he got from the company he started his own hedge fund firm, Centaurus which handles billions of dollars in assets and unlike Enron is doing well.   Mr. Arnold is now one of the richest men in America with a net worth of around $3 billion.

Aside from making money, he and his wife have been active in philanthropic causes. In fact they are now focusing their philanthropic energy in helping to address the pension fund problem in California.  They are supporting a group called the California Foundation for Fiscal Responsibility.

 As of 2011 it is estimated that 10 of California’s largest funds were short by a combined $240 billion.  This is a huge sum of money. It’s better that finding a way to address this problem should be done sooner than later. 

With all his wealth, it’s interesting to see Arnold trying to help address a gigantic problem.