(Not so) fast forward
Upgrades to energy policy, army drones and critical IT systems
Dear Insider,
Progress comes by fits and starts.
Even if we would like it to occur must smoother.
Much easier. Much more painless.
In Switzerland, things never move fast. Even when overwhelming evidence - presented by the highest authority in the land - indicates that it should.
Albert Rösti, fresh in his role at the Federal Council, learned as much in recent days. His efforts to drive through reforms to the Swiss energy market met with stiff - and unexpected - resistance.
The fast-forward button is being replaced by “pause.”
People in the news
Luba Schönig and Tania Zimmermann - Two ex-Credit Suisse bankers have launched a finance competition with the support of Swissquote and Zürcher Kantonalbank. Their aim? Educate young people about money matters - and win clients at the same time.
Beatriz Martin Jimenez - The UBS banker is one of a handful of names being floated as a possible successor to Sergio Ermotti. UBS Chairman Colm Kelleher has apparently given his top man an ultimatum to produce at least 3 strong internal candidates to take his job.
Lara Gut-Behrami - The decorated Swiss skier turned heads by firing her strength and conditioning coach Alejo Hervas after he began entertaining offers from other sports federations and seemingly lost focus on training his current employer.
💡PREVIEW - The fall of Philipp Rickenbacher
The biggest recent news in Switzerland involves Julius Bär, a dangerous cocktail of ambition and hubris - and a sacrificial lamb: CEO Philipp Rickenbacher.
Look for a new Deep Dive coming soon!
A house divided
How Albert Rösti and his party are falling out
The details:
Being top dog does not always make you a winner. Just ask Albert Rösti.
The SVP Federal Councillor suffered a stinging defeat this week at the hands of his own party colleagues. Instead of endorsing his proposal to reform the energy market, SVP voted by more than a 2-to-1 margin to reject the Minister of Transportation’s draft law text.
New SVP president Marcel Dettling was able to turn his party against the proposal without even speaking up against it personally.
Now Rösti will have to go back to the drawing board.
Why it is important:
Rösti’s proposal will go a referendum on 5 June and he has vigorously defended the law pointing out the Switzerland’s independence depends heavily on being energy self-sufficient. SVP questions the cost of the law’s requirements and especially the need to invest so heavily in renewable energy sources.
The big picture:
The conflict with SVP leadership as well as party rank and file will weaken Rösti’s position overall. He may win a referendum in June, but likely only with votes from the socialists and liberals.
The lesson:
Rösti had attempted to use a well-worn SVP theme - sovereignty and independence - to win over his party. It didn’t work.
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Avoiding the friendly Swiss skies
Skyguide faces tough times with IT integration
The details:
The skies over Switzerland may be friendly.
But according to the IT chief of Skyguide - the organization overseeing Swiss airspace and responsibly for aviation safety - things are grim.
In an email to staff, Klaus Meier described the situation as “a crisis” and pointed fingers at the FOCA which has put increased pressure on Skyguide to improve. This comes at the same time that the organization is undergoing a major rehaul of its technical systems.
Why it matters:
As a small country, airspace (like land space) is limited in Switzerland. One the one hand this makes Skyguide’s job easier, with less area to manage.
But Zurich and Geneva are both major European aviation hubs and Switzerland hosts the World Economic Forum every January. This puts it squarely in the public eye.
F***-ups are not appreciated.
The big picture:
The Swiss reputation for superior organization is on the line. Few may notice the dire distress of Skyguide at the moment. But if air routes continue to be shut down and flights restricted, the public will get the picture.
The lesson:
The importance of IT infrastructure cannot be overstated. Financial institutions may be well on their way to major upgrades. But other companies - like Skyguide - lag behind.
IT cannot be put off until the last minute.
Going thin(ner)
Migros joins trend in shedding 1’500 jobs
The details:
Retail giant Migros is planning to refocus its strategy with the result of reducing up to 1,500 full-time positions.
The company is avoiding the term “layoffs” and highlight there are currently around 1,400 open positions within the group.
Key parts of this strategic shift include the sale of its travel subsidiary Hotelplan, cosmetics and hygiene subsidiary Mibelle, Melectronics, and SportX. The sale could potentially take a while as the intention is to conduct the process cautiously and thoroughly.
The big picture:
Selling off subsidiaries and reducing head count makes sense. In a changing world with changing markets, Migros is no longer able to manage diverse units well without hurting its core business.
With sales of 1.7bn CHF in 2023, Hotelplan was a significant, but not huge driver of revenue. It will now compete directly with international groups like Booking.com - and competition will be good.
The lesson:
Even the most popular of brands need to be nimble in the modern age. Long gone are the days when Migros had a dominant enough position to be able to go horizontal without competition.
Agile and lean is the name of the game.
The Insider Advantage
Admiting mistakes is never an easy task - especially in a country as accustomed to perfection as Switzerland.
But a changing economy and changing needs cannot be avoided. Whether they’re in the air, online - or event underground. Moving forward is a constant struggle.
As the world’s most innovative country, Switzerland has a strong history of making good progress. Its world-beating score on the innovation side offers the luxury of making changes sparingly - and precisely - even if they occur in large numbers.
But with Migros facing turbulent times, an army that needs to catch up and a national legend (Migros) in need of the same - the very best policy is to lean into change with the hope of falling forward fast.
It won’t be easy.
The Bonus
☑️ Marcel Dettling in charge - SVP has a new leader - at least on paper. Marcel Dettling has been elected to lead the largest party in the Swiss parliament. (Link)
🚇 Sous-terrain is super - The first leg of the proposed Cargo Sous-Terrain network - a myriad of underground transport - has been outlined. It is controversial. (Link)
🛸 Flying forward - The conflict in Ukraine has far-reaching lessons for the Swiss Army: time to invest in drones. (Link)
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