February 1998 • Volume 4 • No. 2

[LC]

OUTLOOK

CONTENTS

Cover Story

PAGE 18

18 DR. HENRY KISSINGER
INTERNATIONAL
OUTLOOK OF A
VISIONARY
STATESMAN

Lead Feature

26 Utility Guide 1998
Deregulation and
interstate mergers forge
new partnerships and
create new opportunities

PAGE 26

Departments

12 GLOBAL OUTLOOK
Alberta, Canada

15 SPECIAL FEATURE
Overnight Delivery Service
a Package of Options

22 MANAGEMENT OUTLOOK
Background Investigations

39 TECHNOLOGY OUTLOOK
Long Distance Alternatives

59 COMMERCIAL REAL ESTATE
High Rises vs Office Parks

64 BUSINESS SOLUTIONS
SHOWCASE
Executive Lodging

68 FINANCIAL OUTLOOK
Bridge Financing

71 REGIONAL OUTLOOK
Southwest and Far West USA

PAGE 15

In Every Issue

6 EDITOR'S DESK

8 OUTLOOK 25
Track our Stocks

10 GROUNDBREAKERS

102 INFORMATION SHOWCASE

PAGE 87

Executive Lifestyle

88 INSIDE THE MAGIC CASTLE

92 WE'VE GOT YOUR NUMBER!

■ Airlines

■ Car Rental Agencies

■ Hotels

■ Restaurants

■ Cigar Bars

94 EXECUTIVE TEE TIME
Shadow Creek It's No Mirage!

96 CRITIC'S CORNER

■ Taking Charge: The Johnson
White House Tapes
by Michael R. Beschloss

■ Web Page Review

98 EXECUTIVE HOT SPOTS
Denver's Brown Palace

101 EXECUTIVE CROSSWORD

PAGE 98

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OUTLOOK

February 1998

EDITOR'S DESK

American companies are part of the global economy. Trends around the world have a direct impact on Main Street, USA. In this issue we get the International OUTLOOK from one of the world's most distinguished statesmen, Dr. Henry Kissinger.

As Secretary of State and National Security Advisor, Dr. Kissinger was responsible for

opening the door to the People's Republic of China. Initiating shuttle diplomacy, he personified America to the world, attaining a stature rare among diplomats or even heads of state.

Our profile of Dr. Kissinger offers valuable insight to this Nobel laureates views of today's global situation and the state of international leadership in an increasingly confusing era.

We also present our Annual Utility Guide to the major energy companies around the country and how they're able to stay competitive in the midst of deregulation and interstate mergers.

OUTLOOK covers the USA and this issue's Southwest and Far West Focus examines all the states from Oklahoma through Texas across to the West Coast out to Hawaii and north to Alaska.

We continue to give expanding or relocating businesses common sense solutions to real world problems. Feature stories on long distance alternatives, corporate residence housing, and the overnight shipping industry presents a variety of sources and analysis of what makes sense when choosing among competing vendors.

Our commercial real estate coverage keeps pace with our nationwide index of the office market. In High Rises vs Office Parks, we give readers a comprehensive description of the tradeoffs inherent in these on-the-job workplace locations.

With our expanded Executive Lifestyle department we take a trip into the secret world of Milt Larsen's Magic Castle in Hollywood.

Executive Tee Time explores the greens and fairways of Steve Wynn's exclusive Las Vegas Shadow Creek golf course, which recently expanded its highly select by-invitation-only player policy.

High in the Rocky Mountains OUTLOOK checks into Denver's Brown Palace hotel for an inside view of this plush, deluxe landmark.

Based on OUTLOOK's continuing surveys of tens of thousands of business executives all over America, we feel a sense of confidence in the domestic economy and a feeling of hope for today and for the future.

It's in this spirit of optimism that OUTLOOK strives to fashion an editorial product that is informative, easy to read and highlights the issues and the personalities that you, our readers want and need to know about.

Kenneth Joyce
Managing Editor

Outlook's Managing Editor Kenneth Joyce and Dr. Henry Kissinger

On the Cover:
Dr. Henry Kissinger
Art by Ashley LaRae

Publisher

AFINITY COMMUNICATIONS, INC.

Editor in Chief

Eric Kleinsorge

OUTLOOK

Managing Editor

Art Director Lesley Smith

Contributing Writers Elizabeth Barr

Norman Bochner

Bonnie Hogan

Anna Marie Palomo

Tom West

Editorial Assistant Angela Majesko

Contributing Photographers Dan Krauss

Associate Publisher Danny Smith

Advertising Executives Hank Paulsen
Aaron McCartney

Production Director Wendy Couch

Fulfillment Manager Joe Mooney

Telemarketing Director Susan Hobbs

Distribution Manager Sandy Groves

Trade Show Coordinator Jennifer Lorenzo

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OUTLOOK

February 1998

LC

GROUNDBREAKERS
UPCLOSE

# M.D. ANDERSON CANCER CENTER
Living Legends Fights Disease

M.D. Anderson Cancer Center president Dr. John Mendelsohn, and his wife Anne, flank Dr. Henry Kissinger at the Center's Conversations With A Living Legend

## Houston, Texas

The M.D. Anderson Cancer Center, located at the University of Texas, is successful at raising unprecedented sums of money for its vital research to find a cure, and to develop new treatments for cancer. Since 1990, the M.D. Anderson Cancer Center has been sponsoring its "A Conversation With A Living Legend" program as a means of raising money for its activities. By presenting such luminaries as Nolan Ryan, Walter Cronkite, Margaret Thatcher, Barbara Bush, Norman Schwarzkopf, and most recently, Dr. Henry Kissinger, the M.D. Anderson Cancer Center has raised more than $1 million.

The M.D. Anderson Cancer Center is one of the two top-rated cancer research centers in the USA, and the Living Legends programs is an effective means not only of raising much-needed money, but also to increase awareness of the Center's activities to the general public. The M.D. Anderson Cancer Center's efforts which are beneficiaries

of the Living Legends fund raisers include: ovarian, brain and cytokenetic research; cell biology; plastic and reconstructive surgery; and pediatric programs.

The M.D. Anderson Cancer Center has been in existence for over 50 years and is recognized by the National Cancer Institute, having received the largest number of grants from the NSI of any facility in the country. The Center's 467-bed hospital, 11-story outpatient clinic buildings, extensive research and office complex and 9,000 square foot satellite ambulatory treatment center with 18 patient care rooms, allows M.D. Anderson to provide comprehensive care and treatment for anyone, supported by the latest R&D.

Dr. John Mendelsohn is president of the M.D. Anderson Cancer Center, having been appointed by the University of Texas System Board of Regents to the post in 1996.

■ OUTLOOK

International OUTLOOK

LC

Dr. Henry
KISSINGER
Visionary Statesman

Dr. Henry Alfred Kissinger served as Secretary of State in the administrations of Presidents Richard Nixon and Gerald Ford. His credentials as an international statesman are as distinguished as any individual's in this century. In the few years that he managed United States foreign policy, Dr. Kissinger was responsible for the reestablishment of relations for the first time in over a generation with the People's Republic of China. As a master architect of global geopolitics, Dr. Kissinger further dealt with the Soviet Union in the establishment of detente and he spearheaded the control of nuclear weapons under the SALT treaties. From the beginning of 1969, when he was Nixon's Assistant for National Security Affairs, a post he held prior to his September, 1973 appointment as Secretary of State, and until the end of the Ford administration in January, 1977, Dr. Kissinger, the father of shuttle diplomacy and practitioner extraordinaire of hands-on negotiations, completely personified America to the world.

A central preoccupation during his time at the helm of United States foreign policy was the war in Vietnam, the international disaster which forced President Lyndon Johnson from office. The bombing of North Vietnam, and the invasion of Cambodia (triggering the killing of several college students at Kent State) plagued the Nixon administration for four years. Criticism has been heaped on both Nixon and Kissinger for prolonging the Vietnam war, and historians are sure to argue this incendiary issue for the next hundred years.

■ by Kenneth Joyce

In spite of the impossibility of satisfying all parties engaged in the Vietnam war, Dr. Kissinger has seen some ratification of his global outlook. With Le Doc Tho, who negotiated for North Vietnam, Dr. Kissinger received the Nobel Peace Prize for bringing that Southeast Asian war to a negotiated settlement.

Dr. Kissinger also holds the Presidential Medal of Freedom (America's highest civilian award) and the Medal of Liberty.

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International OUTLOOK

> "History knows no resting place and no plateaus"

Dr. Henry Kissinger

Henry Kissinger, 74, was born in Germany and came to the United States in 1938, becoming a citizen in 1943, the year he entered the Army, serving until 1946. With his family, the young man was a refugee from the Nazis and therefore a player, however minor, at a very early age, in world events.

Possessing multiple degrees, including a Ph.D. from Harvard, the now Dr. Kissinger was part of the University's faculty in the Department of Government and the Center of International Affairs from 1954 to 1969. During this period he was additionally the Director of the Harvard International Seminar.

As part of Harvard's elite academic corps, Dr. Kissinger might have toiled in relative obscurity, turning out various texts of interest to no one outside of scholars or other researchers. However, he came to the attention of Nelson Rockefeller in 1955. Rockefeller, elected four times as governor of New York, a presidential candidate, and later vice president under Gerald Ford, was Dr. Kissinger's patron, mentoring the brilliant academic into the realm of political and world affairs.

Nelson Rockefeller was “the single most influential person in my life,” Dr. Kissinger says, “who had introduced me to high-level policy making.”

Dr. Kissinger was Rockefeller's chief foreign policy advisor until he was appointed by the newly inaugurated President Nixon in 1969 to head the National Security Council. But he maintained a close relationship with Rockefeller until his unexpected death in 1979.

The connection of these two men, one of immense wealth and political power, the other with razor sharp intelligence and an uncommon vision of international affairs, cannot be overstated, since it placed Dr. Kissinger in a position to radically change American foreign policy in the last quarter of the 20th century.

“The bond between

Rockefeller and Kissinger went beyond their respect for each other's qualities, the one's intellect and toughness, the other's power and toughness,” according to Joseph E. Persico, writing in The Imperial Rockefeller. “Above all, they represented to each other the possibilities of America. . . . (each man was an affirmation to the other of the country's infinite promise.)”

While developing international relations options for Rockefeller, Dr. Kissinger devised the rationale for the strategies he would later execute while running United States foreign policy under Presidents Nixon and Ford. Normalization of relations with the Soviet Union and especially opening the door to Mainland China (via a highly clandestine mission

there in 1971) had their genesis in papers Dr. Kissinger prepared for Rockefeller in 1968.

Obviously, Dr. Kissinger would not have been able to play such a pivotal role in American foreign policy if President Nixon were not disposed to the kind of bold, and frequently secret, moves that the China initiative required, shaking loose a 20 year logjam between the United States and the most populous country in the world. With his movements around the globe, Dr. Kissinger provides a vivid clarity and creative imagination regarding

In the Oval Office: Dr. Kissinger with President Gerald Ford and Vice President Nelson Rockefeller, "the single most influential person" in Dr. Kissinger's life.

Photo by Ricardo Thomas, White House Photograph Office

Courtesy of the Rockefeller Archive Center

February 1998

OUTLOOK

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International OUTLOOK

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foreign policy, and a stark decisiveness that is the hallmark of leadership. His is a brand of statesmanship in the tradition of George C. Marshall, Harry Hopkins and Averell Harriman, the likes of which appear but rarely on the international stage.

Because he is in the avant-gard, the first to break long-held traditions, Dr. Kissinger is a lightening rod for criticism. He's chairman of Kissinger Associates, Inc., an international consulting firm providing services to a host of global companies, including American Express, ITT and Lockheed. His high profile diplomacy, a most polished form of lobbying on behalf of these multinational businesses is seen as a conflict-of-interest, an effort by Dr. Kissinger to profit from his connections with foreign leaders.

Most recently the Walt Disney Company has turned to the former Secretary of State as a go-between with the Chinese because of a controversy over the Martin Scorsese film *Kundun*, that deals with China's invasion of Tibet, prompting Disney's CEO Michael Eisner to comment, "Henry Kissinger is telling me what to do."

Dr. Kissinger's connections have not hurt him in a business sense. However he is simultaneously making himself available for numerous worthy causes which benefit by his association. The M.D. Anderson Cancer Center and the International Rescue Committee, for instance, have gained substantially owing to Dr.

Photo by Mario Turni courtesy Touchstone Pictures

Martin Scorsese (left) directs *Tulku Jamyang Kunga Tenzin as the Dalai Lama, age 5, in his film, Kundun*. Dr. Kissinger helped quell controversy over the film with the Chinese.

Dr. Kissinger's busy speaking schedule supports worthy causes around the world

> "...foreign leaders
> judge our
> country by its
> insight and its
> constancy"

Kissinger's participation in their fund raising and other activities.

Noted for his wit and self-deprecation, Dr. Kissinger has few illusions about fame and the currency of celebrity. "The main advantage of being famous is that when you bore people at dinner parties they think it is their fault," he says.

It's this quality of puncturing his own self-importance which

endears him to most segments of the American public and allows him to maintain exceptionally good relations with the press, at one point declaring, "There cannot be a crisis next week. My schedule is already full," and that "(p)ower is the great aphrodisiac."

When meeting with him in person, or watching him on his frequent appearances on C-Span, Meet the Press, Nightline or CNN, Dr. Kissinger communicates with

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February 1998

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International OUTLOOK

subtlety and sophistication, nuanced qualities which are usually nonexistent in the uttering of public people, whether government officials or politicians.

All irony to one side, Dr. Kissinger points out the need for leadership in how our country manages its international relations.

"The national interest does not change every four years; foreign leaders judge our country by its insight and its constancy," he says, but "we have, as a nation, failed in recent years to show continuity."

Leadership in foreign policy, as in every other human endeavor, is no easy task. From the Middle East to Bosnia-Herzegovina to NATO to Haiti and treaties with other countries over global warming, foreign policy does not stand still.

"History knows no resting place and no plateaus," Dr. Kissinger says.

Dr. Kissinger made history by going to China. Entering the

Forbidden City and opening up that huge country to the West by meeting personally with Mao Tse-tung and Chou En-lai. It shattered their isolation, which had fostered a generation's worth of radioactive hostility.

Commenting on a situation closer to home, 90 miles off-shore on the Caribbean isle of Cuba, Dr. Kissinger says, "Castro is no longer a threat to us."

One wonders if President Bill Clinton could act as resolutely as did Dr. Kissinger in his secret visit to China, and travel a much shorter distance to Havana and meet with Fidel Castro to bridge nearly 40 years of similar isolation of that tiny island.

No doubt the attitudes of Florida's Cuban refugee population will prevent any such bold diplomacy, but it's the kind of conclusive step that only a visionary of Dr. Henry Kissinger's stature could take in our unfortunately timid world.

■ OUTLOOK

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February 1998

OUTLOOK

21

Management OUTLOOK

BACKGROUND INVESTIGATIONS
ARE MORE THAN JUST REFERENCE CHECKS

■ by Elizabeth Barr

"A few years ago, homicide and human resources would have seemed worlds apart. Yet today, we must protect our businesses and our employees from the violence which permeates our society," explains Dennis Brown, president and CEO of Pinkerton Security and Investigation Services. "Negligent hiring practices greatly increase the chance for criminal activities to occur."

Employee theft is estimated to exceed $150 billion per year and employee substance abuse is rising, costing employers billions of dollars. Multi-billion dollar habits, employee theft and fraud are costly, but the most significant risk to a corporation is employer liability suits and reputation damage because of crimes committed by their employees.

According to the annual National Small Business United (NSBU) and Arthur Andersen survey of small and mid-sized businesses, theft of supplies, inventory or equipment was the most common form of fraud committed by employees. Embezzlement, misrepresentation of credentials, falsifying expenses and kickbacks were other forms of employee fraud, with employee turnover twice that of fraud-free companies.

"Employees know better than anyone what may be going on behind the supervisor's back," says NSBU president Todd

The United States is experiencing the lowest unemployment rate in over a generation, creating a kind of seller's market when it comes to hiring. Corporations need the right people, however they must insure that the person they are hiring, is who they appear to be. As the old adage makes clear, "Things aren't always what they seem and skim milk will masquerade as cream!"

Considering that the rate of unethical behavior, workplace violence and employee fraud and theft has skyrocketed over recent years, it is alarming that many employers take job applicants at face value and fail to perform extensive background checks.

The percentage of dishonest job applicants has dramatically increased in the last ten years. Experts estimate that 40%

of job applicants lie or misrepresent themselves on a resume. These distortions range from embellishing professional experience or education to lying about their criminal background. The lies in and of themselves are significant, however, it is the picture of a prospective employee, in its entirety, that can help a company in its hiring decision.

"People make mistakes in life," says Robert Shellow, Ph.D., of the IMAR Corporation. "But their personal records are not as indicative of professional incompetence as the efforts are to conceal the truth with lies."

Effective background checks result in a higher quality work force, less turnover, and a safer workplace while protecting a company against multi-million dollar liabilities and other lawsuits stemming from negligent hiring.

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Management OUTLOOK

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McCracken. "But once it has been discovered, the damage may have already been done. The trick is to stop it before it happens. Background checks and pre-employment screening may not eliminate every problem, but it will significantly reduce the odds that any incidents will take place."

The majority of workers and applicants are honest and hard working, but it only takes one violent incident to damage a company's reputation, destroy their assets and risk losing valuable employees.

In 1994, a jury awarded $1 million to a plaintiff after finding a Florida carpet cleaning company guilty of negligent hiring. A pre-employment background check would have uncovered his arrests for carrying a concealed weapon, resisting arrest and multiple drug violations. Instead, he was hired based on appearance and application alone. After two years of employment, he strangled and killed two students after arguing with

them about whether he should move their furniture around to clean the carpet.

The US Justice Department's Bureau of Justice has compiled some shocking statistics:

* The workplace is the scene of 3.2 million violent crimes and thefts every year.

* One in 6 violent crimes occurs in the workplace.

* 7% of all rapes, 8% of robberies and 16% of all assaults occur at work.

According to Pinkerton's 1997 Fortune 100 Survey Report, an increasing number of companies are considering security out sourcing due to the rise in workplace crime. Over-loaded in-house human resources departments can no longer handle the demands involved in effective pre-employment screening. As the problems of society increasingly affect the workplace environment, so should the efforts to prevent the mishaps, and indeed the tragedies of mis-hiring.

"Over half of my clients thought that

they could rely on their human resources managers to do a thorough job, but they suffered tremendous losses because of an honest mistake or over-sight," states Pinkerton Investigation Services managing director in Phoenix, Ron Howerter. "They thought they could roll the dice and get lucky. They were wrong."

Relocating and expanding companies are also turning to outside assistance because of rising levels of corporate espionage. Recognizing that the human resource department is the first target for corporate spies, many companies are discovering the need for a back-up support system. Corporate espionage is now an everyday occurrence, which makes many a workplace akin to a mystery movie, instead of a legitimate business.

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For more information check #23 on reader service card after page 102.

February 1998

OUTLOOK

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