“If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea.”
It provided a framework for consolidating and organizing my thoughts and insights on this subject. However, I began by noting a notable aspect. In the early 2000s, while employed as a sales manager at various retail outlets, I frequently observed a competitive dynamic between representatives of two international sparkling water brands. It was surprising to note that, regardless of the representative, one brand consistently held the advantage.
They had the most optimal shelf space and display, and in general, they claimed to be able to take the second brand off the market altogether. Despite the similar age and income levels of the personnel on both sides, I observed these scenes and could only explain and formulate this situation for myself by noting that one representative is “more charged.” However, I was unsure of the exact meaning and composition of this phenomenon, as well as the most effective means of replicating it in a business setting as a manager.
My experience
For some time now, situations of this nature have commanded my attention. Such instances have also occurred within my own company, at the outset of my career in the automotive product sales sector. Our sales team was the most effective in the city. In just 1.5 years, the company had captured a significant market share and, with my arrival, began actively expanding in the Northwest region of Russia. We were experiencing remarkable growth and success, and there were even legends about the company that we were doing something illegal. Otherwise, it was difficult to explain such rapid growth.
I have had the opportunity to observe and contribute to a number of highly successful cases. A commercial director with experience in tobacco and advertising, and a unique personality, negotiated with large Western oil companies that own a chain of gas stations. In just two hours, he transformed their initial dismissive and squeamish attitudes into warm and friendly ones. A handshake, an embrace, and a mutual desire to commence work. Naturally, deals were concluded promptly and effectively, resulting in the permanent removal of competitors from the market. However, five years later, when I assumed a managerial role in the Moscow office, it became evident that the “charged” atmosphere was unique to the St. Petersburg office. I was disappointed to find that the head office did not set the pace or provide an example. A few years later, when I was in charge of the Moscow office of a Swiss company, I observed a similar situation. After five years, the Moscow office had become more efficient than the head office in Geneva. This bias in the system began to create some unexpected situations. From that point forward, I will devote more attention to studying this issue.
The foundation of any successful enterprise is the vision and guidance of its founder. As one astute and seasoned professional advised me: “A company is a reflection of the duality of its leader.” It is difficult to dispute this assertion. A manager’s perception of the world and their ability to influence it directly impacts the success of the entire company. In essence, if a manager believes that he can influence the world, he is perceived as strong, smart, and influential by his subordinates, who then adopt this vision and sense of self in the workplace. Over time, they begin to work from new positions and gradually become what they believe in. This is an exemplar of leadership in its purest form.
However, I have chosen to take this a step further. What if a manager is unable to be physically present and provide daily guidance to the entire team? In a smaller company, personal guidance and presence are important and valuable. How should one proceed when dealing with a large company that has several offices in different cities? What if the company has operations in different countries? Moreover, how do multinational companies maintain a unified approach to work? A prominent fast food chain demonstrates consistent efficiency and profitability across all of its international markets. Sweet American sodas are also highly regarded and well-positioned in the market, holding leading positions on store shelves and in the hearts of customers.
I also focused my research on the activities of Western companies operating in Russia. At that time, I was the head of the Swiss office of a company, which provided me with invaluable opportunities to gain insight into the inner workings of the company as well as access to communication with top managers of Western companies. I was therefore able to make a great many discoveries and gain unique insights.
Western companies in Russia
One particularly striking example that left a lasting impression on me and prompted further reflection came from the business aviation market. One UK brokerage company, a highly successful enterprise with a global network of offices, caught my attention. Despite the challenges it faced, it had remained profitable for an extended period. The company’s top managers and employees changed, but it continued to thrive. We met with the top and line brokers, and I was impressed by the competence with which everything was organized. Not only in terms of business processes, but also in regard to the intangible aspects that imbued the office with a distinctive ambience and a pervasive corporate culture, effectively transforming any challenge into an opportunity. In other words, an individual with no prior experience in the industry can become a highly successful broker with the right training and guidance.
I inquired of numerous individuals for an extended period of time as to who was responsible for developing this matrix. However, no one was able to provide an accurate interpretation of my request. This is where the adage, “A fish does not notice the water it lives in,” became clear. After an extensive period of research, I discovered that the primary architect is the founder of this business. He is a man of advanced age who established the company in the USA in the early 1990s and subsequently spearheaded its global expansion, including into Russia. Upon hearing this, I inquired: “Does anyone here realize that a person created a business in Moscow more than 20 years ago, established key processes, provided autonomy within the strategic framework, and then departed? “And he has never returned. The company has continued to operate without him for many years and has remained a market leader.” In the context of the business aviation market, it is notable that structures created by Russian management have rarely survived to celebrate a company’s 10th anniversary. I was intrigued for some time, sharing this example with various individuals and attempting to ascertain the answer to the question, “How?”
Following several years of research, I have reached the conclusion that Western companies tend to limit their involvement in Russia and other countries where they have opened offices to executive functions only. The strategy remains with the parent company. Furthermore, the discussion of metastrategies, or strategies of strategies, is not permitted. The branches are provided with informational materials, including sales kits. In summary, this is a set of arguments and strategies for negotiations, sales and marketing plans, theses on upcoming PR actions and events, and other highly specific instructions and guidelines for conducting business. It is noteworthy that the creation of this documentation is carried out by individuals who are not publicly known, particularly within the branch. The company thus protects its business at the highest level, ensuring that key strategic issues remain within its control while allowing for flexibility within defined limits, with a system of control and incentives in place. Consequently, a notional corridor is established, which, if executed correctly, will lead the company to achieve its desired outcomes with a high probability. It is essential that the head office consistently collects feedback and analyzes it alongside the planned strategies, making any necessary adjustments to ensure optimal future performance. It’s an excellent system. It should be noted that the above description is a collective representation of a Western business operating in international markets and should therefore be treated as an idealised model.
Planning horizon
Another aspect that has been a surprising discovery for me is