The remarks of Ambassador Donald S. Beyer, Jr. given at the WBCB "Bridge Point Berne" Event

Bern, Hotel Bellevue, November 10, 2009

Thank You.  It is an honor and a pleasure to be here today.

These are interesting, exciting, even frightening times to be in business.  But the older I get the more I learn, the more convinced I am that a good attitude is the most essential competitive advantage any individual, or company, or even nation can have in adapting to changing economic climates.

In a tough economy, it is businesses that are aggressive and optimistic and expansive – who gain market share and create a larger, stronger base for the expansion - that will inevitably follow.

Through this long great recession, I have tried every morning to wake up and ask how can I best take advantage of the financial chaos out there? Sales are way down.  Credit has disappeared.  Consumer confidence has plummeted.  So where are the opportunities for me?

A few years ago we required every person in our company to read a small, not particularly deep or well written book, called, Who Moved the Cheese? (Wer hat den Käse umgeräumt?).

The cheese has been moved – who among us will go find it?

My task tonight is to help you understand how together we can build even more robust business connections between the U.S. and Switzerland.

But first, I want to acknowledge three serendipitous realities:

First: We are incredibly fortunate that both the U.S. and Swiss Governments reacted quickly to the financial crisis.  President Bush rolled out the TARP program that saved American banks and Wall Street, and gave all businesses at least a chance to recover.  President Obama introduced and passed a landmark $887 billion stimulus bill, whose effects are only beginning to be felt.  U.S. unemployment is 10.2% - but it could have been 15% or higher.  The stock market (Dow Jones Average) plunged to 6500 but was at 10,226 earlier today.  Third Quarter GDP grew 3.5% and the recovery is real.
In Switzerland, 3 or 4 different stimulus packages have kept unemployment to 4.1%.  The economy is growing again and most Swiss companies are making money.

Second: Each country has strong economic development institutions.  For the U.S., the Department of Commerce’s Commercial Service helps U.S. Companies export to Switzerland and attract Swiss direct investment to the U.S. through the “Invest in America” initiative.  The Commercial Service also assists U.S. firms that wish to locate in Switzerland.

On the Swiss side, OSCE and the cantonal economic development agencies do an excellent job helping domestic companies export to the States and to find U.S. investment dollars for use here in Switzerland.

Third: Despite the global economic downturn, we are doing well together.

• More that $50 billion in trade
• The U.S. is the second largest market for Swiss exports
• The U.S. exports more to Switzerland than Norway, Sweden, Denmark, Finland and Austria combined.
• Switzerland is the 7^th largest investor in the U.S. and creator of ½ million jobs.
• The U.S. is the #1 investors  in Switzerland –with  more than Russia, China, India and Brazil combined.

So – where do we go from here?  I was a businessman and business owner for 35 years before President Obama appointed me Ambassador to Switzerland.  I believe some of the lessons may apply.

#1 – Differentiate or Die.  For a Swiss firm that wants to sell its product in the U.S. - or vice versa – spend a great deal of time thinking about what makes your product or service different.

It is not enough to have another toothpaste, or ball bearing, or line of clothes, or heart pacemaker – if no importer or consumer can tell the difference.

I am a great believer in Positioning Theory – there is only a small amount of positioning room in the imagination of most people.  This is why BRANDING is so important – whether you are committed to Starbucks Coffee or Crest toothpaste or Volvo cars, it is hard to move you to a new product.

Who was the first person to fly across the Atlantic?  -- Charles Lindberg -- Yes, but who was the second?

In a world of global over capacity, too many products chasing too few consumers, you must find a way to be different!

The Swiss advantage is that American businesses and consumers view Swiss products as being of the highest quality, regardless of product line.  This perception is equally applicable to new and innovative robotic technology as it is to watches and clothing items.

So, out of the box, there is a Swiss differentiation – highest quality, with great innovation in Swiss technology.

But differentiation is not limited to products, it is also important in services, too- and for those seeking investment dollars.

I have many friends in the Venture Capital and private equity business – they manage tens of hundreds of millions of dollars.  They are always trying to find the best place to invest their money.

You need to get their attention!  What makes you different and special?

My 17 year old daughter, who is going to college, has a 4.0 grade point average, 800 SAT’s.  But what makes her special? – There are three or four such kids for every available space.

#2:  PERSIST!  Peter Drucker: nothing happens until the sale is made. 

Here is a sad truth – most sales people and product presentations, QUIT well before the sale is made.

My time honored tip for dealing with sales reps is to defer them – for most will never call back!

• Woody Allen – 90% of life is just showing up
• To sell in America you must show up
• Again and again and again
• Horror stories – life insurance salesmen
• Great stories – Tom Bagamane

This is true with investments too!  My first real estate syndication, I had to call 10 people to get one package report, and then had to send 3 packages to get one investment.

In political giving - 12 appointments to give, some 25 app’s  -  People are ready at different times.  You have to be in front of them when they are ready.

Also, if you can look for someone to represent your product in the U.S. or Switzerland, pick the best operator you can, someone with a perfect reputation, lots of success.

#3: CRM – Customer relations Management

People buy cars from people they know and like.  People give to people whom they know and like.  Most businesses do a terrible job at customer follow-up.

We have all read a powerful book - HUG YOUR CUSTOMER!  Follow up, follow up, follow up.

It is almost impossible to have too much customer intimacy!

We want customers for life - most folks do not want to change, if you can give them a credible, intelligent experience, they will not.

AND - the greatest source of growth for most businesses is still WORD OF MOUTH.  Personal referral comes from customer intimacy.

Customer intimacy is also a source of related growth.  I visited Hamilton Medical in Chur.  They started manufacturing syringes, in hospitals they developed a good reputation, they noticed other needs and their production line kept expanding.

We also focus on customer intimacy for investing.  Every 90 days, I send them a detailed letter (like Warren Buffet) to keep them totally comfortable, excited, invested and they keep coming back!

So, you want to grow your business in Switzerland or USA?

1. Differentiate
2. Persist
3. Get close and stay close

By the way, these are three easy things.  For me, the hardest part is making or designing something that people need and want buy – having the good idea in the first place!

I have always tried to live my life by the philosophy CARPE DIEM.  To grow your business in the United States or in Switzerland, Carpe Diem, seize the opportunities.