Revista MBA

Hello world!

I’m going to write my pre-history by the quotation of sources, concerning my experience. The sources: Facebook, discussion boards, e-mails

I started my study at the Fuqua school of business in July 2008, and I started my work at Ukrainian mining company on 4th August, a week after the returning from the first session.

And I’m starting now

August, 11:

I spent all evening trying to set a good connection and re-listen the first accounting lecture. But connection is dead – Ukraine At work today was my first office day. There are low levels of people and
processes and hign demands of shareholders so I have to do a great deal of work in a few months. Today I started my first HR-desisions – moving people and working with recruiters to search alternatives. I also started from demotivation – to set the effect of the low base and to fight with low level of discipline. I declared that we will divide fixed salary to two pieces – fix and add (wich can be decreased by bad behaviour). People are shoked.
Some are trying to influence me and even treat. If you are interested I
can keep you informed

August, 13:

1.I started moving, terminating and hiring people
2. Today I have had (not sure that I chose present perfect correctly, Tyler, correct me )) a lunch with recruiter and defined tasks for she

3. I had an interview with a candidate to the office manager position and made an offer to her.
4. I moved the CFO from his position to the project management position. He will be responsible for implementing an ERP system for out company
5. I had a little fight with my supervisor from the corporate center (private equity company) of the shareholders. Finally, I suggested him to choose either he is my partner or a just supervisor. I promised that in this case I will avoid truthful communications with him or shift it to formal answers. And he chose partnership
6. I set some rules of effectiveness – I ask people come to my office with exact idea what they want to say and what they want to get. The previous chief spent a lot of time just chatting. And it’s difficult to work
effectively if all people try to take your attention by minor issues. And, of course, the effect of low base. At first days of my post I am trying to be as bad as I can, to shift people in the state of unconfidence. The

next stage will be separating effective people and building a team.

August 18:

My thread on a discussion board, devoted to the overconfidence:

Hello all!
A couple of weeks ago I move to Ukraine and took the CEO post at Ukrainian mining company, which manages a number of mining assets of a large Ukraininan business group. The company produces aggregates that are used in the construction-, road-, railroad-building: gravel, crushed stone, natural stone and so on. The market is rapidly growing and interesting: the increasing consumption in Ukraine, Russia and Eastern Europe countries(construction booms) and decreasing capacities of existing enterprises. As the result, in a few last years the price of the crushed stone (the main product) has grown with the
rate of 30% annually.
So, the shareholders have choosen the strategy of the sharp growth and invited me to develop the company.

I knew that the qualification level of employees is not very high. But executing a diagnosis, I was surprised by the low level and quality of management decisions. For example, when I asked why they had choosen some particular kinds of the mining equipment, the technical management used such arguments as ‘it’s better’, ‘it’s less problematic’, ‘supplier say that it’s exactly what we need’. There were not formal evidences and proofs, just words.
The working atmosphere has been very hot too: each stakeholder has his own preferences and thoughts, but can’t buy-in others, because believes that he is ultimately right and doesn’t want to spend energy for argumentation. As nobody wants to listen others, the company is busy by the finger-pointing
and speculations. I think it’s a clear picture of the overconfidence and I’m going to fight
with it by using formal procedures of decision making (investment analysis, demand of multiple alternatives and so on), outsourcing of technical decisions (we don’t have enough expertise), balance of power, setting the common goals by motivation systems and distributing the corporate culture.

Today I have an appointment – I’ll take a special meeting, representing new politics, principles of management and organizational structure. This is a dress-rehearsal before the Board, where I will present my thoughts considering my first steps and the structure.
If you friends are interested, I translated some slides in English to make clear what rules and principles I am setting and what the org.structure I will suggest tommorow to the Board.
For kicking off, can you fix what ideas from the Managerial Effectiveness course I have used, creating this structure?

Please, forgive me for mistakes and typos – as each starting manager, I have great problems with available time. I hope this first hand and current case would be interesting for you

And of course, I am opened for you questions and suggestions!

Maxim Kuzemchenko

Thank you for your thoughts (some of them are fresh for me)!
I believe, this is not a problem of the isolation, because even inside of departments we can see proponents of their own views, which are not agree with colleagues’ views. They don’t want to argument their positions, because consider them ultimate true.

I just finished the meeting – all was ok. I think they believe me, in spite of some non-popular measures, such as dress code (now it is casual every day) and discipline penalties. I was able to explain why it is important for our success.
Fingers grossed!

Maxim

August, 19

Hi Tyler,
Thank you for your question!
I am sure that now the company is in crisis, in crisis of managent. The shareholders are eager for the company growth and ready to invest millions of dollars, but the company is not ready to use the investments effectively and safely. The first idea shareholders shared with me at our first meeting was to fire 80% of key managers.

As we confess the crisis, we can use rapid and dramatic changes. Sometimes it is very unpleasant, but it is very effective.
For example, yesterday I had the meeting, where tried to share my values and the vision with employees. As you remember, the dress code was one of the success condition and a litmus indicator. When I came at work today I noticed that the head of the legal department is in Hawaii shirt (even more aggressive casual than earlier). I asked him why he didn’t listen my suggestions and he sad me that he don’t want to obey such fun orders. And others who were in T-shirts, were walking around and smiling. As a new top-manager gaining authority, I didn’t see another way as to fire him. And I fired him in 5 minutes, because it was important for my authority and my future in this company. And quite quickly the rest of people started to swear that they need just a couple of days to buy official clothes. And I gave them a chance. It is managerial crisis Tyler and I have to act quickly and rigidly.

Now I am building my team. There are not people I can’t change in the structure, but many people who are the ballast. So I have decided to be direct and may be evel now to be good leader and team player in the future.:)
Let’s see

Maxim

“Tyler Cureton” <curet02c@duke.edu> wrote in message
news:617680@sai.fuqua.duke.edu…
Hey Max…

Are you worried that making quick decisions and aggressive changes might lead to morale problems?  I agree that these changes may be best for the long-term success of your new company but have you thought about the potential short-term drawbacks?  Maybe rolling out changes more gradually after allowing the group to reach “consensus with qualification” would be of benefit?

I’ve been trying help the supervisors that report to me to feel comfortable around conflict and not run away from it.  They tend to either completely avoid it or attack it in a way that comes across as more of a personal
attack rather than a discussion of the facts.  I really like the articles views on humor and how that can help groups reach decisions but I imagine that the ability to use that tactic varies greatly depending on the cultures of those involved.

Tyler

“Maxim Kuzemchenko” <maxim.kuzemchenko@duke.edu> wrote in message
news:617536@sai.fuqua.duke.edu…
Hello all!
A couple of weeks ago I move to Ukraine and took the CEO post at Ukrainian mining company, which manages a number of mining assets of a large Ukraininan business group.
The company produces aggregates that are used in the construction-, road-, railroad-building: gravel, crushed stone, natural stone and so on. The market is rapidly growing and interesting: the increasing consumption in Ukraine, Russia and Eastern Europe countries(construction booms) and decreasing capacities of existing enterprises. As the result, in a few last years the price of the crushed stone (the main product) has grown with the rate of 30% annually.
So, the shareholders have choosen the strategy of the sharp growth and invited me to develop the company.

I knew that the qualification level of employees is not very high. But executing a diagnosis, I was surprised by the low level and quality of management decisions. For example, when I asked why they had choosen some particular kinds of the mining equipment, the technical management used such
arguments as ‘it’s better’, ‘it’s less problematic’, ‘supplier say that it’s exactly what we need’. There were not formal evidences and proofs, just words.
The working atmosphere has been very hot too: each stakeholder has his own preferences and thoughts, but can’t buy-in others, because believes that he is ultimately right and doesn’t want to spend energy for argumentation. As nobody wants to listen others, the company is busy by the finger-pointing
and speculations. I think it’s a clear picture of the overconfidence and I’m going to fight
with it by using formal procedures of decision making (investment analysis, demand of multiple alternatives and so on), outsourcing of technical decisions (we don’t have enough expertise), balance of power, setting the common goals by motivation systems and distributing the corporate culture.

Today I have an appointment – I’ll take a special meeting, representing new politics, principles of management and organizational structure. This is a dress-rehearsal before the Board, where I will present my thoughts considering my first steps and the structure.
If you friends are interested, I translated some slides in English to make clear what rules and principles I am setting and what the org.structure I will suggest tommorow to the Board.

For kicking off, can you fix what ideas from the Managerial Effectiveness course I have used, creating this structure? Please, forgive me for mistakes and typos – as each starting manager, I have great problems with available time.
I hope this first hand and current case would be interesting for you

And of course, I am opened for you questions and suggestions!

Maxim Kuzemchenko

August, 20:

Privet Jake, ))

I tried to explain Tyler (in the other thread), why I have to be rapid and decisiveness. It is really painful for me, but I don’t have time to learn people who aren’t able to learn.
Those who are capable – they have waited for clear aims, decision making procedures and a strong leader, who sets general principles, methods and gives power. On Friday I will defend the investment politics before the Board. It will create a set of tools for forming and assessing investment ideas. The set for not only TMT, but also middle management and just employees.
We are partially Asian people and we wait for leader, if environment is messy and unclear. On contrary, if a new manager is too polite and democratic, people consider it weakness and try to win more advantages and
freedom. Asia…. And of couse, I realize that I have to catch the moment to switch my

behavior from a Bad Cop to the traditional team-working and facilitation. I like the biography of Churchill too. And I agree that Churchill’s low sensibility and absense of the desire to share the vision was sometimes the reason of his shattering downfalls. I promise that I will try to be wiser.

Jake, I like your idea that sometimes I should buy-in by citing the best practices rather than my oun thoughts. I really use this approach and Fuqua gives me great credentials there – people do listen me and believe me. Also I draw examples from my previous experience and it works. I think I will gain much more authority, when I get first results of my ideas and decisions, because my ideas will be supported their own experience.

Maxim

September, 1:

There are quite crazy days… Today I fired one more hollow person. I very hope that he was the last victim – I have tied to be bad. The final (I hope) number of victims is 5 and it’s a pity. But I can feel now that we stand well on the ground and we are starting to build the brilliant future of our company. Today the COO has started. In the next week the supply director will start. In the week after the CFO and a heavyweight project director will be starting. Today I had a pleasant interview with a probable head of the law department.
Next, we are planning a set of business trips to grasp the situation and to create the vision.
Tommorow I will flight to the heaquarters to discuss a pre-strategy – my suugestions of principles, rules and a short-term road map for out company. And I remember ideas that I must not forget about the flexibility, buying-in others and the team approach. Today I can start to think about these issues,

but yesterday there was just the anti-crisis management.

September, 5

The letter to Pradeep, my classmate who had asked me about my work

Hey Pradeep,
Thank you for your kind words! How are you???
Yes, I’m doing well. I have terminated 5 hollow people, but have found brilliant changes for them. Some new people have started, a majority will start in a few weeks!
People have started to wear official suits, now they try to do things in time. The pace of tasks is great so all remaining people are inspired and want to work. Sometimes it’s difficult to be calm (when they let me down), but I try
I fixed a set of urgent measures – quick wins some kind of a micro strategy that will direct us before the appearance of the Strategy). I’m going to defend it in the next week.
I have cut dramatically administrative expenses. We urgently created a budgeting process and the investment process and want to implement them quickly. ALso I’ve started some competitive supply procedures – competitive lists and tenders. One more, we started today a new quarry!!! And will start the next one in a couple of weeks.
On the whole, it’s quite interesting but still demands a lot of time )))
That’s all news, I think I have to go )
Good luck!!! Keep in touch!!!

Maxim

September,11

My letter to the professor of Managerial Effectiveness:

Also I want to thank you for your course…. You probably remember that a month ago I started as the CEO at a mining company. The beginning stage of my work looks like anti-crisis management and consumes a lot of time, but simultaneously I realize that I have a window of changing opportunities – people are unfreezed for changes.
I’m trying to build a really effective and advanced company, using best practices and knowledge, and I’ve found your course extremely useful and practical – many of its ideas have already been implemented in my company.
I always keep your recommendations (about flexibility, for example) in my mind and so helps me to save the thin thread between the necessary anti-crisis management and totalitarianism. I’ve created the vision of
quick-wins, strategic directions and actions before the strategy appears. At the present I wait before all people of my company discussing my vision and creating adding/opposite/endorsement opinion.
On Monday I plan to call a great strategic meeting and discussion with employees and the TMT. Then I am going to defend the plan before the Board. In the next week last members of the new TMT will join to the company and we will start to build a team in terms of leadership, flexibility, collaboration and growth.

One recent case that can be interesting for you. The managing company has a few open-space offices. Space of the offices was distributed accordingly to the functional structure, creating great conditions for silos.
I decided to optimize the distribution, set some principles of the space distribition and allowed all employees to make the decision that based on these principles. So I made people to walk in my shoes and to accept this change more positively. Today all employees have moved accordingly to the
new office plan, quite positively and friendly. The principles were:
1. top-managers sit near me
2. Minimum walking and to get minor information (for all)

3. Neighboring and interacting departments sit close to each other

4. Representatives of core departments (operations, supply, investments, sales) sit side-by-side. Infrastructural and staff departments sit farther. Sorry for extra-conciseness, the time currently is the most valuable resource )

September,15

Today the last top-manager from my new team joined us. And a couple of key managers will come in the next two days. On Thursday I’m going to call a teambuilding bowling party for all people
from my company who want to have fun.

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