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Far Eastern Entrepreneurs Adopt Management Engineering
This spring one marketing consulting agency having American partners took an opinion poll among directors of small, medium and large businesses, asking what management technology they apply. 95% of the respondents said that they do not apply any management engineering, 2% of them deploy their own processes, another 2% apply ISO 9001 and 1% of the above respondents use MBA (the companies exploiting L.R. Habbard management engineering were not requested - Note of the Far Eastern Capital). The situation is commented by Expert on departmentation Irina N.VYSOTSKAYA who is specializing in formation of a well-defined company structure and dominance hierarchy for each employee and each department. The technologies she provides advice on are used by such large companies like Disney, Mercedes, Toyota, Coca-Cola in Mexico, Forema Kitchens, Ortomed and many others.
“You should not forget about Russia’s WTO accession. To be successfully integrated into the world market, traditional business-making practices applied by Russian companies will not be sufficient. When you are seeking for a partner, you may be asked: what your business’ mission is, what the strategy to achieve it is and what your company organization is. If there are no distinct answers, the partnership may not happen. However, the Russian business has a very high potential, the foundation of which are employees. I would like to note that employees of Far Eastern companies are very professional. You can tell that by the fact that people from the Far East moving to the central part of Russia and Moscow can easily find a highly paid job. Primorsky Region is distinguished for a developed educational system. The majority of local productive specialists are provided additional education.
“Anyway, generally speaking the Russian business is not sufficiently trained to management technologies. I am always stricken by Russian business owners, when there is no money, no network, there are problems with employees and at the same time they say “I believe this is the right project”. But instead of using management engineering they put themselves into debts and very often spend the time and money uselessly.
“Frequently, business owners see the problem of low profit in the insufficient work of sales department. But that’s not always true. According to my experience sometimes it is enough to structure and systematize company employees’ work to have the company effectiveness grow several times.
“After Russia gets accession to the WTO, many Russian companies interested in foreign relations will experience difficulties in seeking partners due to lack of well-defined management system. Even now foreign partners give preference to those companies, which use ISO Quality System. The above provides them a certain warranty that the company controls over quality of services provided and production of goods, etc. That is why the Russian business needs to consider implementation of management engineering.”
“Starting from what level of the business it is preferable or probably necessary to have the company structured?”
“The technology I advise on allows structuring of a successfully operating company, maintaining the bridgeheads and further development. Start-up companies first need to develop precise production process and only then to structure their activities. At the same time I used to help beginners who wanted to see general picture of their future activities already at a business planning stage. But the practice showed that after one year of operations they modified the initially created structure for a more successful production process allowing generation of greater revenue.”
“What can you tell today about consulting area in Russia and abroad?”
“If we compare the consulting sector, the need in that service in the central part of Russia is more developed than here, in the Russian Far East. Both in Russia and abroad consulting companies specializing in one type of activity, let’s say marketing, started to emerge. However I have not yet found the companies giving advice only for one business sector. That is not yet developed at our market.”
Consultant on company structuring
+7 (914) 656-63-50, e-mail: [email protected]
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