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Related Items: PEP Success StoriesGROWING DIVERSITY GROWING DIVERSITY
Since the end of the Soviet Union, Sergey Davlekayev, Chairman of the Mir Farming Union, has embodied the entrepreneurial spirit PEP is building in Russia. Initially allotted a 22.7 hectare plot, Sergey combined resources with friends and family and began farming 700 hectares. Now, three years after his PEP internship, Sergey has built a 7000 hectare farm by convincing others to sell him their land in exchange for work at a regular salary. Sergey credits his PEP experience for the growth of his company. The biggest impression Sergey had while visiting farms in the US was the level of diversification. For the first time he was introduced to fish farms and immediately returned home to create his own, which regularly yields a profitable harvest. Sergey continued to diversify and expand his operations by purchasing equipment from old farms and refurbishing buildings to house new operations. Soon after his return to Russia, Sergey’s sunflower oil processing operations began to turn a profit. That same year, Mir began making cereals from their grain. After struggling to find millers, the company purchased their first flourmill earlier this spring. Later this summer, Mir expanded into macaroni production, as well. Now with 700 employees, Sergey’s company has also diversified into many service activities to support his workforce. A modern grocery store, a private school with donated computer lab and a private medical clinic all add to Mir’s diversity and increase the standard of living in Frolova. Another thing that impressed Sergey during his training was the extensive irrigation system in California. Inspired, Sergey created his own working irrigation system from scrap metal. While still small in scale, it has been very successful on his farm. Today, more than three years following his PEP training, Sergey continues to implement and share new ideas taught by his American colleagues, “When I’m trying to convince someone of my knowledge, I always refer to my American experience. I say, ‘If they can achieve that level of farming in the United States, why can’t we?’ It used to take a lot of time to convince them, but not now. They have seen the results on my farm for themselves.”
COMMUNICATING CHANGE
Igor Repnikov is the deputy director of Computing Centre Volgogradenergonaladka, a Volgograd-based telecommunications firm. Thanks to his training in the U.S., Igor implemented new management techniques, developed a new company strategy and introduced new technology. Igor found his American counterparts’ management style to differ greatly from his Russian experience. Each department and position carried a thoroughly outlined job description, creating a remarkably transparent system. “You can actually find out what is going on in the company,” remarked Igor. Mimicking these practices in his own company has enabled Igor to increase productivity and accountability. With only 70 employees, Igor’s company is small compared to the massive telecommunication firms in Moscow and St. Petersburg that are beginning to reach into the regions of Russia, threatening local companies. In the U.S., however, Igor learned about the ‘last mile’ business strategy. As the larger companies begin laying fiber optic cable into the regions, Volgogradenergonaladka lays the ‘last mile’ of cable, linking local companies to the interregional cable, making them an integral part of the system. Buying into the system has allowed his company to prosper despite the challenges from the giant firms. Not only was this business model new to Igor, but the technology
was foreign as well. Igor’s business hosts introduced him
to the latest fiber optic technologies, which he quickly realized
would work just as well in Russia. “This gave me a real competitive
edge,” recounts Igor. “It allowed me to attract more
clients and provide more services.” Today, fiber optics is
beginning to replace the current system that relies on telephone
lines, providing a real boom to Volgogradenergonaladka and the Russian
telecommunications industry.
Yuriy Ushakov, Chairman and owner of Travnik, a drug manufacturer, distributor and retailer, was impressed by his PEP experience. He returned to Russia with new concepts for management in his company, as well as new ideas about the American people. Coming to the U.S. for training, Yuriy sought new insight into personnel management. One thing that caught his attention during a training visit was the use of benefit packages— insurance, retirement plans, etc.—that American companies offer to entice and retain employees. The employment contract was also a novel idea; Yuriy liked the relationship that a signed contract established between management and employee and he quickly realized that properly designed employment contracts could increase productivity. Now, all new hires at Travnik sign a one-year contract for employment. At the end of the term, performance is evaluated and a new contract is signed for workers that have shown good results while others are let go. Yuriy was touched by the generosity of his hosts, both Rotarians
and Americans in general. He saw Rotary as a forum for communication
between people. Relationship-building between Americans and Russians
was central to Yuriy’s PEP experience, “Our country
has become more open. People have started to travel more, and they
have had the chance to share their experience. Our country will
win from this exchange. We will learn more about you, and you will
get to know us better.”
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