Comments, 09.04.2010

Tabaharnyuk Miroslav A.
Vice President of Industrialists and Entrepreneurs Union, Chairman of the Supervisory Board of the Company "MT-Invest, candidate of economic science.

 

Miroslav A. You, as a man with a large management experience, can really prove that even with a lack of funding, economic crisis and large number of problems the company can overcome these processes only through effective management?

The merit of effective leadership in any field - is not to overcome but to predict. The most effective method of control - is daily waiting of the crisis. In other words, the chief any company must always be ready for a crisis and the rise market can stop together with easy access to credit. That mean the development strategy of the company will move to a strategy of survival. As the present most businesses do not even want to think about what and how to do business in other more stringent conditions. Payment for this approach was too high. The main goal of any manager should be in the right setting goals and objectives, in scheduling function. Correctly and clearly defined purpose and mission will develop competent marketing strategy, set priorities, both short term and long-term outlook. Correctly formulated problem is 80% success.

In other words effective management - is the right strategy? What about control?

To develop any business the team must have clearly formed purpose. Any brand or business - it is primarily human factor, your team. And effective people management for me has always consisted of four basic functions: planning, organization, motivation and control. Each of these functions should be given equivalent attention. Head of the company who pays attention only to control the process will lose the process like the one that does not control his team at all because they both forgot about such function like motivation. Clearly the main goal of any enterprise – is to generate income. And the whole team from cleaners to the CEO must do their best to achieve this goal. But to understand interest in the profits should also the whole team! Very hard to explain to people why they should do their work for hundred percent, have irregular working hours, use all their intellectual abilities to achieve the target if nothing changes for them personally regardless of whether this result is achieved or not. Once again I want to underline that the result in business is profit, other result is not a target.

In other words, companies where strategy was correct and has effective management even in crisis handled without discharging people, closing branches, reducing costs?

They handled without massive discharging. The company always has two ways to increase your profits - or to increase this volume of sales or to reduce costs. The crisis was the catalyst for many companies in terms of correcting their own strategies, taking into account errors of excessive stuff and inefficient administration. As financial adviser of mergers and acquisitions market, I want to emphasize that in evaluating of any company huge attention is directed not only to the level of yield, but also to the effectiveness of management, level of team’s professionalism, competent marketing strategy. And even in a crisis there are a lot of companies that continue to generate income in their business areas. Maybe not in such quantities as before but still they are profitable. Once again I want to emphasize that human factors is 85% success. The main cause of the crisis on the Ukrainian market is the low competitiveness and social responsibility of many heads of companies. That is why many of them did not go through the crisis test.

And what do you think may be ways to solve this problem?

I hardly invent something new. To overcome this crisis we must return to the common truth of management, more effective investment management more balanced and rational attitude to credit. If a company produces a competitive product, takes a good market position, clearly understand their goals, objectives and requirements, financial difficulties may completely be solved by attracting of strategic partner. Unfortunately Ukrainian M&A market (approx. Mergers and Acquisitions Market) is only in development process. Many modern companies with mistrust perceived possibility of selling their own assets to more powerful player. One more proof of effective management and the correct placement of priorities and emphasis by the head of the company is the ability to understand the necessity of selling assets or attracting financial partner. Crisis in this area can play a positive role - destroyed stereotypes and changing approaches to business, going reassessment of values. The crisis - a threat, but it's also a chance! This is a chance to see each company’s own mistakes, the chance to build a more effective system of management, set priorities. Thus every manager must understand - business may not “stop”, business must “step further”. Strategies that mean “to ride out the crisis” mean a stagnation and activity decay. So we have clearly to understand the need for changing, and that changing everybody must start by itself.