– Until recently, Yukos was perceived as a leader in new management ideas and in process management. What have you managed to achieve, which projects have become successful?
– I am glad that the people we employ are not indifferent. Each one of them makes a unique contribution towards the end goal, and this allows us to remain leaders even now. In our work, we have become oriented towards Western management models; fortunately, there was an opportunity to become familiar with key international companies in the transportation, oil production and IT sectors.
I think that our company has always had the best corporate management in Russia. It implies clear standards, suggesting that a manager follows a code of practice for his actions when there are stressful circumstances.
For example, due to a low employee turnover, employees working at Yukos Transservice have become high-level specialists in pipelines, water and automobile transportation and in manufacturing oil products. I think this is our main advantage in the market.
Another distinguishing feature of our company is the constant employee training. Every employee has to take courses to improve his or her skills.
The biggest companies in the national oil industry have centralized power. They believe that it is more convenient for them to do business in such a way and they have a right to think so. Our position is based on the idea that the more independent local subsidiaries are, the more responsibility the regional managers will have. Yukos’s important advantage was combining the usual hierarchies in issues regarding manufacturing aspects which concerned the company as a whole and the independence of regional subsidiaries. In fact, the Moscow headquarters now deals with strategy, methodology, development, and HRM issues. It is this managerial solution that helped the company to survive in the recent hard times, and this is why our company is still alive and developing.
However, the problem of communication still exists: it is quite difficult to find out from our Moscow office what problems there are in the production area over in Novy Urengoi, where it is well below zero right now. It seems that the right decision is to appoint a director who would have to make decisions regarding production activities. It goes without saying that some financial issues will have to be discussed with Moscow before a decision is taken, but he will act within his sphere of competence. He suggests – Moscow approves.
– But it will take a long time?
– Despite the fact that we are located very far away from each other (the furthest subsidiary is in Angarsk), all matters which require discussion are negotiated on the phone quite quickly.
– If we look at the way business is organized in other oil companies, are there any models you would like to follow?
– Yes, there are interesting things going on with regards to the IT support of production activity. I personally believe that soon IT managers will define the competitiveness of a firm.
– As far as I know, Shell carries out strategic development related to the declining supplies of oil and gas resources, in order to understand how to adjust their business to the changing market.
– Yes, this is true, but Shell belongs to a different category. They are right in their worries about it, and they can invest their resources in it.
As far as Yukos Transservice is concerned, until 2020 oil and oil product shipping will remain in high demand. Railway transport in Russia is all-important. This can easily be explained by the fact that the Russian economy is very closely connected with railways; I think it is one of the most important industries that is going to continue to develop rapidly.
– What is the wittiest and most apt saying about management or business that you have heard either from a colleague or classmate, or a professor at the MBA programme?
– I can’t quite recall… I would have come up with something in half an hour or so. I am sure that such a saying would imply something like people are first, second and third. |