As Russia moves from a centrally controlled economy to a market economy, this transition period is one of uncertainty and some confusion. There is a requirement for the execution of many billions of dollars worth of projects in all sectors of the economy. Russian historic methods of project management were based on a strong centrally controlled planning system that no longer exists. There seems to be a Russian desire to utilize western project management techniques appropriately adapted to the Russian situation.
There has been a broad base of Canadian contact with Russia, quite a few Canadian companies venturing into the Russian market. Many of the companies are related to the energy business, specifically oil and gas. Some produce products which are used in North America and are now either supplying the product into Russia or working in a joint venture with Russian interests to produce that product in Russia for use in the Russian oil and gas industry.
A few companies are involved in actual production or exploration issues. In the specific case of oil wells, there has been involvement with improving the production of those facilities for the benefit of Russia. It must be kept in mind that these operations involving successful Canadian companies are all for the purpose of making money or profit. If the projects do not make money for whatever reason, then the projects are considered to be unsuccessful. Several companies that have ventured into the Russian marketplace have found it difficult to do business and they have in turn decided to discontinue major operations in Russia. However, the majority which have looked at the Russian market see that there is great potential and continue to pursue activities in Russia.
Key Concerns with the Russian Business Environment. The application of government regulations throughout Russia and the regions seems to vary and is not always consistent, this creates confusion as one thing North American companies enjoy in their own environment is relatively consistently applied rules and regulations. There may be inconsistencies from one part of a country to another and in the case of Canada from one province to another, but those inconsistencies are clearly understood. When working in a specific province in Canada, the regulations are equally applied to all companies whether they are Canadian or foreign companies. In any part of the Canadian market, one can reasonably quickly determine what regulations are applied and one knows that they will be evenly applied.
This does not appear to have been the case in Russia and because of this some Canadian companies have found it extremely frustrating and difficult to work in the Russian environment and to work with Russian partners. Even the Russian partners occasionally appear to have difficulty understanding the continually changing ways. Improvements have been made and are continuing to be made. It must be noted that at the beginning of any project involving investment, when uncertainties exist investment becomes very difficult to obtain. It can only be obtained if the investors are either convinced that with the high risks, the rewards will be very, very great, or that alternatively they can see a stable mechanism for the future of their investment.
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Key Strengths of the Russian People in Business. Virtually all of the Canadian participants have been very complimentary of some key strengths of the Russian people. One is the fact that in general Russians are very well educated, have a high literacy rate and a good basic, broad education before specialization. However, during the technical education processes some develop a very "academic" approach to the way they view issues and analyse them. Little emphasis is put on sound economic results but rather emphasis is placed on theory in planning with the predicted results based on theory. It appears to be assumed that the results will be achieved without question. This applies to Engineering as well as Social Sciences and is related to areas such as the scientific approach to project management.
Some of the perceived problems of working in Russia relate to the fact that in the fact the appropriate tools were not given to people to allow them to move ahead, to be creative, and to manage work in the most productive way. With the excellent knowledge base from which to start, given the appropriate management tools, this problem will be overcome.
We have learned in North America that if people are put into a work situation wherein they have strict boundaries as to what they can and cannot do, quite quickly initiative is curtailed and people will work strictly within those boundaries. This means that innovative methods and solutions are not tried. To obtain more progressive results, we have restructured much of our work into a pattern of setting goals to be met rather than providing detailed instructions on a day-to-day basis. Then individuals or groups (teams) are encouraged and allowed to determine appropriate methods for reaching those goals.
Transfer of Project Management Experience
s Russia moves from the old economic system to the future free market economic system in which the industries and businesses must be more attuned to their users or customers needs, there is a perceived need for western management techniques and specifically for western methods of project management.
Although academic training is a viable method of imparting western knowledge and expertise, practical experience is a very necessary component. Many schooling programs are working with existing managers and utilizing specifically designed programs to impart knowledge and techniques. Most would agree that the ability to grasp the key issues is enhanced by "on-the-job" experience. Working with foreign project management personnel and being coached by them on real projects is a realistic method to assist Russian project managers to modify and grasp the management skills and techniques required.
Russia needs some external, practical help to quickly move beyond the past theoretical and traditional ways, but still use their individual thinking process. Demonstrations that the theoretical approach can be blended with some practical experience will allow Russians to acquire practical knowledge quickly and to gain experience without repeating the past errors of the west.
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14. :
1. What were Russian historic methods of project management based on?
2. What issues are Canadian companies that have ventured into the Russian marketplace involved in? 3. Why did some companies decide to discontinue major operations in Russia? 4. On what condition can investment be obtained when uncertainties exist? 5. What are key strengths of the Russian people? 6. What are shortcomings of the "academic" approach? 7. Why is initiative curtailed when people work within strict boundaries? 8. What viable methods of imparting western knowledge do you know? 9. Why does Russia need external practical help?
15. :
1. Problems of Russia's transition to market economy.
2. Canadian involvement in Russian economy.
3. Key concerns with the Russian business environment.
4. Key strengths of the Russian people in business.
5. Transfer of project management experience.
16. :
found oil-producing -
resident educational establishments -
field block of flats -
discover
:
Tyumen
Tyumen is the oldest city in Siberia, it was founded in 1586. Tyumen is the administrative centre of the Tyumen Region.
Tyumen stands on the banks of the river r and has 350 000 residents.
In the fifties and sixties, oil and gas fields were discovered in Western Siberia and Tyumen has become the countrys main oil-producing region. Sometimes it is called "the Oil Capital of Siberia". Many million tons of oil are produced in the region. There are however many other industries in this region.
Tyumen is not simply a major industrial centre and transport junction, it is also the cultural capital of a large territory and it has five higher educational establishments including a university.
Tyumen is growing and improving at a rapid rate. Many new blocks of flats, schools, hospitals, cinemas and educational establishments have been built there.
1. When was Tyumen founded? 2. Where does it stand? 3. When did Tyumen become the countrys main oil-producing region? 4. Why is it called the Oil Capital of Siberia? 5. Is Tyumen simply a major industrial centre? 6. How many higher educational establishments are there in Tyumen? 7. Is Tyumen growing and improving at a rapid rate?
17. :
A: Engineers engaged in the petroleum and natural gas industries encounter many problems that present both technological and economical aspects.
B: But why is it so?
A: You see, these industries have their own special methods and techniques, their own peculiar economy, a knowledge of which is encompassed in the training of the petroleum engineer-economist.
B: Dont these industries find need of men trained in other fields of engineering in solving some of their more specialized problems?
A: Surely they do. Nevertheless the broader development and production phases of oil and gas industries are the primary field of the petroleum engineer-economist and the management of such enterprise should be entrusted to men trained in petroleum engineering economics.
18. :
You were late this morning, Brown.
Yes, sir. Im sorry. I overslept."
Good gracious! Do you sleep at home as well?
Notes: oversleep (overslept) -
Good gracious! -
