17 - 23 May 2001

The (frozen) art of moderation

Known by many as the eminently successful President of Valletta FC for the past 15 years, JOE CARUANA CURRAN is also known by an equally large number of people as a stalwart member of the business community and former president of the FOI. KEVIN DRAKE takes a closer look

Joe, for the benefit of those who have not been around these parts for the last 20 years or so. Who exactly is Joe Caruana Curran?
Joe Caruana Curran is now 43 years old (now starting to feel it and look it), mainly involved in running an ice-cream factory manufacturing Smiles Ice cream and distributing Motta ice creams. Going back a few years, I’d have to say that my schooldays were quite uneventful. Primary education at St Joseph, secondary school at the Lyceum and then University where I graduated in Economics at the age of 20. Actually I was quite a good student. I enjoyed my studies and never bothered my parents in the least – which is more than I can say for my two sons! (Laughs). Anyhow, after I completed my studies I joined the family business. Unfortunately I only had the benefit of working with my father for a couple of years because when I was 23 he passed away.

Was it a “sine qua non” that you would be joining the family business?
Yes. It was probably a decision taken for me when I was 11. My summers at that time used to be spent at the factory packing ice-creams. Later on I worked in the engine room, cleaning the floor, oiling and cleaning the machines. I then moved into the factory, and, later still, I worked as a salesman, driving the trucks and doing whatever else needed to be done. I became a manager five years after I started working. Although many would say that this is the “hard way” of going about it, I still think that it’s the best and most intelligent way of preparing someone for management. Today I’m in a position to appreciate all the implications and details related to the very many different jobs and tasks involved at all levels. I know precisely what a job entails because I’ve probably done it myself. Few people can get away with telling me that something or other cannot be done when I myself have “been there, done that”. On the other hand, having worked at all levels, I can better appreciate the importance of the more difficult tasks that would otherwise go unnoticed, and give praise where praise is due. The learning curve of those formative years was extremely important to me. Finally, when I got to management level I started off in Production, then to Sales, up to general manager and, when my father passed away, I became managing director.

How important is this element
of “Praise” that you’ve just
mentioned?
I think you’re best able to appreciate a job well done when you’ve actually done the job yourself. That way it’s easier for you to recognise merit. Very often many people find it difficult to praise somebody else. It takes so little effort! I really believe that a pat on the back and a prosit (well done!), when it is deserved, is much more effective than adding a fiver to somebody’s wage packet at the end of the week.

Are you a good motivator of people?
Without sounding presumptuous, I think I am. I see all the people around me as being very motivated in all they do. If everyone around you is motivated then it stands to reason that someone, somewhere must be motivating them; someone must be leading them in the right direction. Seeing this obviously motivates me too. I report back to a board of directors, which is also a motivation in itself. This also means that everyone has to be on their toes constantly, including me. Motivation in itself is a partial achievement. Without motivation though, there is no achievement. In all my various involvements I find that I do manage to motivate people successfully. That’s probably one of the few plus-points in my character (smiles).

Do you see yourself as an absolute leader or a team player?
There has to be someone leading somewhere but that leader has to be part of a team. You can’t assume the role of a coach telling others what to do. You need to be the Captain on the field, also doing what the others are doing. You need to be willing to do whatever is necessary, whenever necessary. When we talk about “teamwork”, it’s very important for everyone to know what everybody else is doing. You need to be able to appreciate the pressures, the difficulties, the problems and the deadlines that others are facing. You need to see the “big picture” so that, when necessary, you can lend a helping hand or receive assistance yourself if you need it. Effective teamwork makes everybody’s life much easier while work is carried out more efficiently.

Are you a very calm person?
I wasn’t. Actually I was quite highly-strung, losing my temper very easily. It took me a few years to realise that this sort of behaviour was useless and served no purpose except to harm myself and others. I am a much calmer person now. I suppose it’s important not to put yourself under too much pressure. When you don’t pace yourself properly you tend to place a lot of unnecessary pressure upon yourself and others.

What about time-management?
I think that now I have become a good time-manager. But I haven’t always been. I guess that my improved time-management skills and my calmer disposition have developed hand in hand. Naturally, I do have my bad days too. But the important thing is not to overdo it and focus on the positive things that may come out of a bad situation.

Does being calmer improve your problem-solving capabilities?
Definitely. I remember myself being over-eager, over-expectant and constantly putting undue pressure on people. I then started taking the time to recall my own experiences in the jobs that others would be doing. I began to appreciate much better the constraints and problems involved. That made me more lenient, more tolerant, more understanding. Nevertheless, I still don’t tolerate carelessness. I check my own work over and over again, so I expect others to do the same.

Do you apply very high standards, as a rule?
Yes. In that regard I think relaxing your standards is tantamount to stupidity. I am very much in favour of the European Union. Nevertheless I don’t feel that Malta’s eventual membership is such a crucial issue either. It’s all about standards. If we truly believe that the EU standards are what we should be striving for, then we have to be guided by those same standards. We’ve always had an inferiority complex insofar as the Europeans are concerned. That’s stupid and untrue! We are just as capable as anybody else. Once we are capable (and I know that we are capable), then we have to start delivering precisely what we say we can deliver. And I believe we can.

So for you its not so much about the political dimension rather than the standards that the EU imposes?
It’s all about standards. We’re doing the same thing here (within the company), working for ISO and HACCP. It’s not an easy task but we’re doing it because we believe in the need for written guidelines delineating what our standards should be. And we have to follow them rigorously. If we were in a position to apply, across the board, European Union standards, then membership wouldn’t be so important. The important thing is gearing up to it and being prepared for it.

Do you think that we have cultural problems in Malta with laws and regulations and with the application of standards?
For many years we’ve done very little with regards to introducing serious regulations and imposing standards. In the past 10 or 15 years, on the other hand, we’ve been asked to do a lot. Abiding by laws and standards, though, can be a very costly exercise. Take health and safety, for example. There are immense costs involved. Yes, we do have to be willing to pay the costs for improving, but there are many pitfalls involved with the “too much, too soon” philosophy. With regards to the European Union, I feel that at times we have been rushing in too fast. This might not bring about the desired results. There is a timetable and an agenda that needs to be followed. I’ve always felt that it’s pointless for government to be following one particular agenda when this is not perfectly synchronised with the agendas of the other social partners. Unless synergies are in place, nothing will get done properly. Another very unfortunate reality is that many rules and regulations are imposed upon the private sector but not imposed upon government departments or parastatal companies in the same way. It is very unfair that two weights and two measures are applied in this regard. There’s very little anyone can do about it either.

Do you think that governments, as a rule, lack consultation skills required for adequate consultation on important matters?
Very often I have seen decisions being taken without adequate consultation having taken place. Governments might have political agendas that would not necessarily be good for the country at that time. Governments also need to apply certain standards. They have to be accountable, regulated. At the end of the day any government has the primary responsibility of bringing the country forward. Bringing the country forward can only happen effectively if all concerned are consulted regularly. Too often you’ll find that in Malta consultation is only res-orted to when support and consensus for a certain initiative is being sought. Ireland is a classic example of true consultation. The Irish economic miracle only came about because all the social partners sat around a table and worked hard at creating prosperity, together. Going back to what I said earlier about two weights and two measures. We’ve been hearing a hell of a lot about the imposition of environmental laws, waste management and so on. And then we’ve still got Maghtab. It’s pharisaic. How can you impose regulations upon me when you yourself are not binding yourself by those same regulations? I’m prepared to foot the bill for conforming to those laws that will improve standards throughout, but why aren’t you doing the same? Why isn’t government leading the way? People will obviously react to this anomaly by asking many uncomfortable, but justifiable, questions. This is what makes people lose faith, lose confidence, in the powers that be.

But doesn’t the European Union impose regulations on governments as well?
The ironic thing is that even if the EU were to impose certain standards and regulations, I’m sure that the private sector would be compelled to act and conform immediately whereas the government would be excused from doing anything for a number of years thanks to concessions and transitions and derogations – and whatever else is negotiated beforehand as a safety-valve.

You were president of the Malta Federation of Industry (FOI). What did you achieve during your term there?
I was acting president for one year and president for two. This was between 1997-1999. I think that during this period the FOI acquired a very high public profile. We were quoted and interviewed extensively because we were, consciously, very outspoken and highly critical (in a constructive way) of all that was happening around us. We managed to keep a lot of people on their toes and also came up with a good number of initiatives and suggestions, many of which had shocked all of the other social partners at the time (grins). The Benchmarking exercise was a case in point.

Between 1997 and 1999 you “straddled” two different governments. Nevertheless the FOI
maintained its reputation for being very fair with all and sundry. How did you manage this?
Basically, we refused to become anybody’s “football”. We had very good relations with both governments, both prime ministers, both ministers of finance and industry. We always spoke openly, criticised wherever criticism was due and praised whenever praise was in order. The FOI did have a very tough time when the water and electricity bills issue was in full swing. This was also one of the issues that brought about the premature elections in 1998. We believed that the new rates would have been very damaging to industry and would have reduced competitiveness. We spoke very openly to that effect and I think that we were respected for it then, as we are now. The FOI represents a huge cross-section within the industrial sector, it has a very important role to play and I also think that it is essential for us to give our contribution. One of the things that I had stressed as president of the FOI was ensuring that, while we were being critical, no one would criticise us for making mistakes or for giving out incorrect information. I feel that all the comments and statements issued by the FOI during my tenure were fair and completely non-partisan.

Why do you think that it is so rare for businessmen to be involved in the political forefront?
I feel that more people in business should be in Parliament. I believe that more people in business should become ministers.

But surely, a businessman’s motivation and a politician’s are somewhat different?
One great difference is that you’ll find few politicians possessing adequate management skills. Those that do know how to manage properly either come from a business background, or else are very familiar with the business world. Ideally, the civil service should be looking after the
management side of things, but that’s where it fails spectacularly. The civil service in Malta is a huge entity but is extremely thin on the ground at managerial level. At decision-making level there is a conspicuous vacuum. One cannot expect a minister to decide everything. A minister must be able
to trust and have faith in other people. So employ the right people. This also brings me to another problem: Salaries. Civil service salaries are simply not adequate, especially if you are seeking to employ good people. As is the case with the ministers and members of Parliament. Their salaries are ridiculous. Keeping in mind the responsibilities that all members of Parliament have, it is very unfair that they are paid such a pittance. Unfortunately very few members of Parliament here hail from the business sector, unlike other countries. Berlusconi in Italy is a case in point. Having more people from the business sector involved in politics might probably imply that more would be delivered to the public. Business is a very results-driven sector. Results cannot be driven by politics. Politics sometimes may have to be driven by the achievement or the lack of achievement, or, lack of achievement results. We definitely need to see more business-minded people in Parliament. Primarily for their inherent sense of objectivity, if not for any other reason.
Many people also know you in a different context, as president of Valletta football Club. Have you had any problems prioritising between the business and the club?
Well, I’ve been the club president for 15 years now, but my priority has always been my business, there’s no doubt about that. Football has been my only and greatest hobby. I don’t have many other interests. I don’t collect butterflies, I don’t walk along beaches looking for shells! (Smiles). My father had played for Valletta and I became involved in football from an early age. I’ve thoroughly enjoyed my years with Valletta, it’s been a great experience. I’ve been very lucky to have had committee members and players who have always delivered in every sense – people who have always given their best to the club. Success has certainly not been lacking. We’ve won six championships in the last 10 years and 29 honours in that same period. That’s no joke. We’re talking of an average of three cups every year. This year we’ve won four of the possible six honours available, and we shall be trying very hard to win the other two.

Is there any direct relationship between your outlook towards the business and your outlook toward running the club?
Yes. It’s all a question of
management. As president of the club I don’t coach the players, I don’t select which players go out on the field, I don’t choose which gear to play with. I consult with the coach on matters related to the squad, I try to raise funds and so on. At the end of the day my role is an administrative one. I don’t allow anyone to interfere in the coach’s decisions. The coaches I’ve worked with have all been extremely professional in their work and have all managed to deliver. With regards to raising funds; up until a few years ago we used to find it very hard to raise sponsors for the club. This year, for the first time, we have three. I even had to refuse a fourth, which is a great pity (smiles). Its definitely a question of management. As a club we spend more than we earn so there are always financial problems. Right now, for example, we’re in the process of developing the Salinos ground and installing artificial turf. Hopefully that will also start injecting cash into the club. Perhaps, in the near future, between sponsorships and everything else, the club will mange to become self-sufficient.

Has your involvement with Valletta FC interfered in any way with your professional life?
No. You have to keep both things distinct. Its probably because I have considered it as a hobby of mine that I’ve enjoyed it so much. Mark you, your utmost dedication is required nonetheless. I suppose that between Monday to Friday I spend at least two to three hours a day working on club matters. On the weekend there’s obviously much more to be done. It is time consuming but I’ve gotten so much satisfaction over the years, I’ve made so many friends, that I have no regrets whatsoever.

Do you think that success is
contagious? Is success in one area automatically transmitted to
another?
Not necessarily. There are so many factors that will influence success or otherwise in different areas that it’s impossible to assume that success is guaranteed across the board. The only common denominator towards trying to achieve success is determination.

So what is the secret of success?
Success can be equated with respect. A measure of your success is the respect you enjoy from others. My father, for example, was a very well-respected man. My only wish, in terms of “success”, is that people will eventually recall me with the same respect they had for my father.

People refer to you as “Is-Sur Joe”. Does that annoy you in any way?
(Smiles) Not at all. I guess I was called Sur Joe from the day I was born. My father was known as Is-Sur Joe so it was automatically passed on to me. My son who’s 20 years old is called “Sur Joe iz-zghir”! It’s definitely easier to say than Mr Joe Caruana Curran! (Laughs). Rather than a sign of respect I’m pretty sure that it’s a term of endearment more than anything else.

Back to the notion of success. What characteristics does one need to possess in order to attain
success?
First and foremost you have to have determination. As for luck... Hmm. That’s a difficult one, because luck can work in favour of you one day and very much against you the next. I would also say that success, apart from determination, comes about when you begin to implement what you believe in. It’s also important for you to pass on your beliefs to others. You cannot achieve on your own, in any area. You need to have the right people around you. They need to be
determined, motivated and they have to enjoy your total respect. The people around you make or break you, that help you to achieve success. I would not be heading a successful club if I didn’t have the players and the committee members that I have. I wouldn’t have a successful company if I wasn’t surrounded by the people who back me up the way they do. Success comes about when everybody contributes in the right way.

Are you a good judge of
character?
Normally yes. Perhaps I’m fortunate in having the ability for choosing the right people to have around me. That’s possibly the reason why I am surrounded by very good people.

What does success give you at the end of the day?
The satisfaction of having achieved what you’ve pre-
determined as your goal. Respect. Making money, I suppose, is very important too, but to make money without enjoying it is a very hollow experience. I’m sure that you feel far more gratified by earning your money in the correct way, the right way, in the way you planned to make it.
What about the negatives?
I suppose the worst feeling is the anticlimax brought about by an unsuccessful year, especially if the previous years were very successful. The disappointment is heightened by the fact that you would have put in the same effort nonetheless. Success or otherwise sometimes depends on a number of factors that are beyond your control. In our business we depend heavily upon the weather. My ideal kind of weather (for the Ice-Cream business) would be a 45 degrees Celsius average from the 1 January to 31 December! (Laughs). But just suppose that you get a freak storm on 5 August. That’s it. Your summer’s over and the business suffers and there’s very little you can do about it.

What’s the best advice you’ve ever been given?
My father influenced me greatly in that regard, with the one word he would repeat to me over and over again: Moderation. I keep that thought in mind constantly and I feel that it has helped me a great deal in all areas of my life. I try to be moderate in whatever I do and I sincerely believe that I manage to “apply” moderation more and more as I grow older. My father also instilled within me a great respect for honesty. All that you’ve achieved in a lifetime would crumble into dust if you are discovered to be dishonest just once. I don’t think that I would be able to live down the shame that dishonesty brings with it. I am extremely jealous of my reputation for honesty, and, I suppose, very proud of it too. If you let yourself be guided by the principles of moderation and honesty, you will probably obtain a moderate success, moderate respect, an honest living. Which are, at the end of the day, all that somebody needs to live happily.