Barbara Ellington, Lifestyle Editor
Brian George: I stand on the shoulders of giants. Like Albert Einstein, whatever I accomplish is as a result of those who went before me; their hard work, sacrifice and commitment. - RICARDO MAKYN/STAFF PHOTOGRAPHER
AS THE Jamaican business landscape continues to widen, more links continue to be forged with regional companies and executives who are expanding their horizons on the island. One such executive is Trinidadian Brian George, president of Supreme Ventures Limited. His journey to the present began in 1995 when company Chairman Paul Hoo visited the twin-island state.
Theirs was not a planned meeting, but they hit it off right away, and when the time was right years later, a more permanent business relationship was cemented. The collaboration has been fruitful, and among the significant milestones is the currently-running public share offer that gives Jamaicans a chance to own a piece of the company. Brian George describes himself as a Caribbean man who has made strides because he stands on the shoulders of giants. He now recounts the steps in his journey.
Barbara Ellington: How did your relationship with Supreme Ventures begin?
Brian George: When Paul Hoo came to Trinidad to meet with GTECH representatives in 1995, they at the time felt they should be meeting instead with the then Jamaica Lottery Company (JLC). He met with me instead and outlined his vision for the company and Jamaica. We had several meetings in Jamaica as we tried to convince major players that there could be a viable second lottery in Jamaica.
In 1999 I was offered the position of vice-president in one of GTECH's subsidiaries called Dream Port, that used to have responsibility for its slot machine business. I left Trinidad in September of that year and took up the position in Florida. Mr. Hoo and I still kept in touch and I remained interested in the company.
In Florida I was the only vice-president who occupied an office that was a converted store room; it had no windows. That experience was a critical turning point in two positive ways:
1. It reminded me that I am first and foremost a Caribbean person.
2. The learning I gained form understanding the video lottery business is now proving valuable since SVL is expanding into that business. It was a blessing in disguise.
I went to Dream Port in 1999, but whereas I was a big fish in a little sea in Trinidad, I was a little fish in a big sea in Florida. The experiences were tremendous and I visited places I'd never have dreamed of going to, such as South Africa, Switzerland, Belgium, Portugal and Mexico. I did things I never thought I'd do and it exposed me to the wider lottery world. At the same time, I had to deal with internal demons that made me realise the perception that I was a little boy in a big man's world.
By 2001 when the decision was taken that Dream Port could not exist as a business unit, I had the responsibility to shut it down. This required me firing a number of people and I felt naked at the time. I was in Florida on a work permit; I did not have many options as a foreigner in a foreign land.
I expressed to the GTECH vice-president for Latin America a desire to return under his division. He asked if I'd be willing to go to Jamaica to help set up business. It was the greatest opportunity for me, especially the prospect of being reunited with Paul Hoo, the now-deceased Peter Stewart and Ian Levy.
I came and took control, trying to accomplish a nine-to-12-month job in three months. My introduction to Jamaica was a baptism by fire but my employers understood the challenges.
BE: What was your contractual arrangement with GTECH?
BG: I had a two-year contract to start up the business. In 2003, they asked me to extend it to a further two years but at the same time SVL asked me to come on board as president. They thought I knew the business from its inception and it was a great opportunity for me.
BE: Any regrets?
BG: No, I stand on the shoulders of giants. Like Albert Einstein, whatever I accomplish is as a result of those who went before me; their hard work, sacrifice and commitment.
What's important to me is that whilst I'm at the helm of SVL, I'm not the company. It's the actions of a lot of people and I just happen to be fortunate to steer the ship.
BE: What did you study in college?
BG: I studied physics. I'm a diplomat brat: my mother was assigned in 1971 to the Trinidad and Tobago consular officer handling consulate matters in New York. We all moved and I finished high school there. In many respects moving away from the Trinidad system of education saved me. I got the latitude to explore who I was in every way.
BE: How does a physics major end up in business?
BG: When I first went back to Trinidad after the first degree, I actually started a master's in medical physics. I quickly understood that in our medical system, you are either a doctor, or not, and whilst many of the doctors encouraged me to do medicine I decided to leave. So I went to work for International Business Machines (IBM).
BE: How long did you stay there?
BG: From '81-'84; then from '84-'89, I was at American Life and General Insurance Company (ALGICO). It was an interesting experience and in '89 I was recruited as the head of ICL (now Fujitsu). By 1994, GTECH was setting up in Trinidad and I was head-hunted by them because they wanted someone with experience in dealing with agents, marketing fast consumer products, dealing at high governmental levels and was U.S.-trained.
BE: You have been a business professional, do you see yourself making the transition to being a businessman at some time in future? That is, running the shop for yourself versus for someone else.
BG: There are two sides to it; I think I'm a businessman now, because I'm a shareholder and in that capacity at SVL I see myself doing what is necessary to bring value to what I own. I am not just a salaried employee, so working for shareholders means working for myself.
The other dimension is that my situation came about because people like Bill Gates understood the importance of stock options in motivating managers to think like owners. So I see myself as a business owner, as well as a business professional.
BE: Where then do you see yourself in relation to SVL in the next five years?
BG: It's difficult to predict. The days in which we could predict five and 10-year horizons have changed. The world is changing so quickly that whether young or old, we need to position ourselves to take advantage of opportunities when they occur.
About 20 years ago companies did long-range planning but today we should have a clear vision of what is achievable in the next three years. The way world and business conditions change, the most prepared executive/company is the one nimble enough to respond to change rather than one set and so frozen in plan.
BE: Let's talk about the segue from GTECH to SVL; how did that go and how has it been?
BG: I was flattered when asked to take over as president. We had had a good working relationship before and I was asked by GTECH to renew my contract in 2003 for a further two years. They had suggested I go to other areas such as South Africa, but I wanted to be grounded in the Caribbean after my Florida experience. We had achieved a lot together and the SVL step was a logical one for me to take. It was merely a question of changing floors and being warmly welcomed.
Paul Hoo did an excellent job of stepping back and giving me the latitude. It happened in little and significant ways. I had an individual relationship with all three major shareholders operating at personal and group levels. The late Peter Stewart touched me in a significant way and and his wife, Janet Stewart, made sure I was comfortable settling in Jamaica and SVL.
I began on September 2003, and by October 1, the win tax was introduced. From day one it was almost crisis management. We saw business drop significantly. We saw the effects of the tax and had to put propositions to Government, understand its consequences and take the necessary corrective action.
Right after that, it was the acquisition of JLC and subsequent consolidation of both companies. Then Peter Stewart's death put many things in perspective. However, my transition was fairly smooth allowing me to speak to GTECH with a knowledge of what happens behind the scenes. It gave me greater leverage. Many things that GTECH did with SVL were my initiatives so I couldn't now go back and criticise my own actions.
BE: Speak clearly and simply now to the present share offer. There are concerns among persons in some quarters to the extent where they say that lotteries are uncertain or what if something happens with GTECH. Why should the public be enthusiastic about buying SVL stock without fear of losing their money?
BG: I don't think there is any unprofitable lottery worldwide and Jamaica is no different. You are dealing with a business that has demonstrated that it has legs over time. The issue of the future of the business has to do with the vision and execution of its possibilities. We have a strong board with the capability to execute the vision. We have strong management team and a clear sense of what we want to accomplish over the next three years.
All companies have a certain amount of risk. But I am comfortable that there are no legislative issues I can think of; this is a well-entrenched business; none of the two major political parties have expressed a concern about the success of the lottery. I don't see any operational issues - if you think of the effect of lotteries on state economies in the United States, (all of whom use GTECH platforms) 80 per cent worldwide - I am comfortable with GTECH.
BE: But GTEC takes so much of SVL's revenue before you make a profit. Is that bad for prospective shareholders?
BG: When we were mandated to go public, one of the factors was that GTECH's strength is the extent to which they have long-term contracts with their customers. The fact that we got the Betting, Gaming and Lotteries Commission (BGLC) to extend our licence from 2011 to 2016 gave us leverage to go back to GTECH and negotiate a reduction in our fees so effective 2007. We have a 36 per cent reduction in our fees which will reflect in our bottomline and create a big jump in profits from 2006-2007.
BE: What were you paying them before?
BG: About 9.2 per cent on average of every dollar sold and effective 2007 it will be 6 per cent and shareholders will benefit.
BE: What else do you have in the plan for Jamaican expansion and what are the plans for expansion into the region with the CARICOM Single Market and Economy (CSME) coming in stream.
BG: The reason you're not convinced about the CSME is because unfortunately Caribbean governments have had a very pitiful history of implementing regional bodies. We saw CARIFTA, CARICOM which had the opportunity to do what the CSME is purporting to do. I can understand that people will be justifiably sceptical about the implications for CSME. But we are no longer insulated from what's happening in the rest of the world. Trading blocs have become a reality so the CSME is as much a survival tool as anything else.
BE: Why has Jamaica become such an attractive prospect for Trinidadian investors?
BG: In the late 1970s and early 1980s when we (Trinidad) had the first oil boom, that was also accompanied by a certain unsophisticated mindset in the business community.
Instead of seeing the boom as an opportunity to expand strategically, we became like Caribbean Arabs. We went through our own internal changes. One big difference was that Prime Minister George Chambers (1980) mandated that the manufacturing sector to get back to work. Prime Ministers Chambers, Robinson, Manning I, Pandy and Manning again have held taxation and economic policies consistent so that the business community has grown up over the last 15-20 years.
Why the interest in Jamaica? The reality is that oil gave us an economic platform for growth. We had a strong manufacturing sector. Unfortunately the economic circumstances in Jamaica created opportunities for us. RBTT, for example, came about as a result of the '90s financial meltdown.
BE: Many Jamaicans who buy the lottery tickets still think it's 'fixed'. Some say every time there is a big SVL event, there is a big jackpot. The man on the street thinks the current one is somehow 'timed' with the IPO. Please clear the air for the record on that score.
BG: The lottery system we use has the same software used by New York and other lotteries. Many people don't know that before every draw, a series of checks are done to ensure balls come up randomly, they are all the same weight and so on. The BGLC, our internal/external auditors, are on hand for all draws. The public is welcome to witness the draws. If I could explain the timing, I'd be a millionaire; it's simply the luck of the draw. There is nothing we can do to influence outcome, everyone involved has a lot at stake, all we sell is integrity.
BE: What would you say to young business majors across the Caribbean now doing their MBAs?
BG: First, don't be afraid of change; I began as a physicist and walked away. Know your comfort level and be comfortable with change. Some say it's luck but the harder I work, the luckier I become. I think luck is when opportunity meets preparation.
The other thing it is to prepare yourself and see all you do as contributing to your growth.
Thirdly, follow your instincts; we all have an internal barometer that helps us understand what is right or wrong for us, so learn to follow those instincts and don't be afraid of failure.
BE: You are now in your third year as president of SVL, given all the sprints involved, have you so far accomplished all you set out to do?
BG: One of my major objectives in taking up the job was to take the company public. That's on track but from a professional perspective, the most gratifying experience of my job is hearing people who took a chance five years ago to join the company without knowing the future - say they never would have imagined the strides. We had no name back then and today we are among the top companies in the island.
BE: Describe the team.
BG: We have a committed team; and are in a state of transition - four years ago we were 28 and today we are over 300 strong. The logistics of everything we do now are different. It's been a challenge but we have responded well. the JLC/SVL merger went well and we are now one team. With Prime Sports, we aim to continue and focus on the best of each one's strength while making sure all feel the pride of working in the group.
BE: Will there be more gaming suits after May Pen?
BG: Yes, one in Savanna-la-Mar on target to be completed this year for operation in 2007.
BE: Will that be saturation point?
BG: No, you never know what saturation point is, every statistic we find suggests that the gaming lounge can be five times the size of the lottery.
BE: Do you think Government will ever grant casino licences?
BG: Yes, but I see that aspect as mainly for tourism. In Las Vegas, the locals don't go to the casinos, they use the vibrant community gaming lounges. There's a social aspect and friends gather there to have fun. But casino licences will eventually be a reality.
BE: What has been your biggest surprise as a Caribbean man on the path to the present?
BG: As much as we are the same Caribbean people, we are different and I do understand our love-hate relationships. I appreciate Jamaica in terms of its history - Jamaicans are big on black pride, there is a style and dynamism that makes you special. You are innovative; you don't see barriers - the bobsled team is a big example of that. But there are gaps in the social structure with which we also grapple at home.
BE: What is your hope for Jamaica and the Caribbean?
BG: We have a strong social conscience and I hope we implement a plan to address the social inequities in the long term. For the Caribbean, I would love to see greater integration because if we don't stand together, we will die separately. Real integration is necessary.
