True North

TRUE NORTH A flickering soul in no-man’s land Introduction Above all, unto thine own self be true and it shall follow as the day the night, thou can’st not then be false to any man. Shakespeare – Hamlet Our story is about a visionary man with an impressive career spanning five decades: Knut Utstein Kloster. Knut is a Norwegian, generally considered the father or founder of the modern cruise industry – an industry which today generates over $20-billion in annual revenues. He is a man of conscience, with a world view. He once described himself as a ‘flickering soul’ in no-man’s land – the place where his world is secure and comfortable, but where, just beyond reach, in full sight, over 4 billion people live in abject poverty, suffering from preventable diseases, and subsisting without basic necessities, most without even electricity. Globalization and the information age have combined to make the world a very small place where it is more difficult to blur the misery of others, or to any longer pretend there is nothing we can do about it. Industrialization of the rich and developed countries has unwittingly contributed enormously to the degradation of the Planet, and now our bad example is being replicated by aspiring developing nations and their exploding populations. Knut has never been able to put these realities out of his mind, or to conduct his life, or operate his business ventures, as if they were disconnected from what is happening to the Planet and billions of its less fortunate inhabitants. More of us need to feel that connection if civilization, as we know it, is to be sustained. Knut was Chairman of Klosters Rederi A/S which operated a fleet of cargo ships; he developed an innovative plan for port decongestion that unblocked one of the busiest ports in the world in the 70’s and provided a prototype for other developing nations; he founded Norwegian Caribbean Lines (NCL), later renamed Norwegian Cruise Line. Klosters Rederi A/S also owned, for a period, Royal Viking Line and Royal Cruise Line. Knut played an important role in the 1994 Winter Olympics at Lillehammer, Norway, by developing a traditional Norwegian village, with sod-roofed cottages in designs dating back over the centuries, to house the international media covering the event. The village also contained a large community center which served as the media’s headquarters during the games. The government of Norway had insisted that every aspect of the planning for the Olympics conform to the highest possible environmental standards and that all development projects would have a useful life after the games. Today, that mountain village is enjoyed year round by Norwegian families and tourists and is a great asset for the region. Kloster sponsored a 15,000-mile journey of a replica Viking ship, named GAIA after Mother Earth, which gathered thousands of messages of children along her route and delivered them to world leaders in Rio for the 1992 Earth Summit/Global Forum. This is not a biography and the chapters do not necessarily track a sequential line of events. Much of the story takes place around Kloster’s $1.5 billion ‘city-ship’ project, initially known as the “Phoenix project.” The Phoenix project spotlights Knut’s vision, pioneering spirit, willingness to take risks, and perseverance in the face of seemingly insurmountable obstacles. It also epitomizes the ideal that businesses can have a heart and make a difference and that financial and larger goals can complement one another. What is particularly exciting about the Phoenix project is its scale and innovation. Although the ship is not yet contracted, the correctness of Knut’s vision has already been proven out in the cruise industry. He was right when everyone said he was wrong, it was possible when everyone said it wasn’t, and decades after he correctly projected where the industry was heading, and how powerfully it would contribute to the international leisure travel business, the project is poised for realization. When the prototype ship is built, it will be all that Knut envisioned it to be, not only an outstanding financial success, but, most importantly, a model of 21st century capitalism. Whether we call it, like Bill Gates does, “creative capitalism,” or like Whole Foods’ founder, John Mackey, “conscious capitalism,” the new bottom line for 21st century capitalism, will measure success based on the company’s impact on all stakeholders, including the environment and the global community at large. Kloster’s vision for the ships of the future includes insuring that they operate with minimum impact on the environment. With marine pollution playing a significant role in the destruction of our environment and ocean ecosystem, Knut has launched a Green Clean Global Village® initiative which will promote green technologies for ships including, where appropriate, advanced atomic engines which will ultimately enable ships to be operated profitably – with zero emissions – in harmony with nature. Throughout his interesting career and challenging business ventures, he has proven the axiom that businesses can “do well by doing good.” Long before ‘green’ became more than a color, or capitalism came generally to mean more than just profit-making, Knut was investing in socially responsible enterprises that valued all of its stakeholders. The now popular expression, ‘triple bottom line,’ was Knut’s modus operandi from day one. He actively supported the earliest initiatives aimed at improving the environment and promoting the concepts of sustainable development, such as the Centre for our Common Future, which took up, on a private level, the excellent work of The World Commission on Environment and Development which had been headed up by former Norwegian Prime Minister, Hon. Gro Harlem Brundtland. Inspired by the possible, Knut has been working on another futuristic ship – this one with a mission. Dubbed GAIASHIP, the concept is to provide a neutral meeting place and world forum where thought leaders in industry, science, public service and education can gather to address global issues of shared concern – a Davos at sea, but operating year round. This book highlights some of Knut Utstein Kloster’s major business ventures in which he strove to combine financial and larger goals: “2 + 2 = 5,” he said, and the formula has guided most of his decisions from an early age. The story emphasizes the important role of the conscience in navigating a just and equitable course forward. Kloster’s “no-man’s land” is the distance between the world-that-is and the world-as-it-should be. You don’t have to know or care anything at all about shipping or about the cruise business to enjoy and be inspired by this story. Knut happened to descend from an old and respected shipping family in Norway, so it follows (particularly after the early death of his father) that he stayed in the family business and, as a highly intelligent, restless, and adventuresome young man, set out to build on his experience and expand the business in new and exciting directions. To be touched by this man’s life and example, it could have been any other business, but it actually helps the story that Knut is in shipping because of its international character. It is a business in which the stakes are often high, the risks can be immense, and the potential for change and innovation is wide open. Since the oceans represent 70% of the Earth’s surface and are, like the skies above, imperiled by pollution and other human activity, Knut’s leadership in this area is especially important. The story about the creation and development of the modern day cruise industry has actually been told very well by Kristoffer A. Garin in his 2005 book, Devils on the Deep Blue Sea. Knut wasn’t, by the way, one of the “devils” in Garin’s book; indeed, he was one of the few angels,