Deborah Anne Palmieri A new generation of young Russians, highly educated and trained in Western management skills, is destined to become one of the major driving forces in transforming the Russian economy. Contrary to a popular perception in the West that “the brain drain” has resulted in most talented Russians fleeing abroad to see a better living, in reality, most young Russians are choosing to remain at home. They have decided their talents are needed to build their own country, and these young people are smart, driven to succeed, patriotic and determined to raise their own standard of living. As one young Russian explained his decision to stay at home, “People are more open here, more sincere and funny. It’s a very dynamic place, and young people have big opportunities.” Another young female student provides an important insight into why she is staying. “For things to become better depends first and foremost upon us youth. I can see now that young people have become more involved, and I hope this portends well for the future. I don’t want to leave because, first, I love my homeland, and second, I want to build my home here. Isn’t that right for myself and future generations?” (Source of both quotes: cnn.com, Soviet Legacy: From Communism through Chaos, 4/25/02.) Not only are most young people staying, but many who left in the previous decade are returning home. Michael Stedman in a Russia Journal article noted, “In the beginning nineties, more than one million of young Russians have left for the better future of the West, but nowadays many of them are coming back with their Russian mentality and Western knowledge and work side-by-side with the Western colleagues as if they are still in the West, but they are in Russia!” Another Russia Journal article quote sets the tone for my argument: “Old management is dying out and being replaced by a new generations of managers with global thinking and a flexible mentality who love to surf the Internet and stress they don’t see any difference between working, say in Russia, in Germany or in Singapore.” (Russia Journal, April 10, 2000.) The most dynamic managers in Russia are young people in their twenties, thirties and forties. They are running some of Russia’s largest enterprises, and they have also created start-ups and lots of entrepreneurial ventures. The Russian research organization magazine “Expert” has identified some of the large companies which harbor outstanding managerial talent. These included Russian Aluminium, Perm Finance Company, Moszhukombinat, Lukoil, Svyazinvest, Uralmash, Syrgyneftegas, Baltika, Samarskaya Cable Company, Gazprom and others. (“Expert,” #36, October 1, 2001) Russia’s new team of managers has a good grasp on the business problems they face. Said one top manager, “The Russian economy’s main problem is not investment but the mentality of people, their attitude to work and the quality of management. If we do not solve that problem, no amount of investment will help.” He frankly declares, “If we stop stealing and start working, we are fated to succeed.” Russia’s young managers are focused on the principle of “building companies rather than extracting cash.” The asset-stripping behavior of their forefathers and corrupt methods of draining company dollars into individual pockets are something the young generation will leave behind. The wonder of Russian managerial talent is that it has learned from the painful lessons of the past - from an inefficient planned economic model of the past, from the chaos and corruption of the collapse of communism and the difficult transition during the Yeltsin years. They have learned that for Russia to become competitive, they need solid managerial principles, a knowledge and application of market principles and a spirit of entrepreneurial pursuit of excellence, combined with a sense of ethics and patriotic commitment to their country. Research support provided by Vladimir Trigubenko and Konstantin Mikheyev. Part II in our next issue will focus on a more detailed examination of some case studies of Russian managerial talent, how the young managers are running Russia’s companies, and how their new methods differ from the old. The Russian-American Chamber of Commerce® is a nonprofit, nonpartisan organization acting to promote American business interests in the Russian marketplace. Last Updated: April 23, 2003. |
