Stanislav Shekshnia

Corporate Governance in Russia

This article analyzes Russias emerging corporate governance system taking into account both foreign and domestic influences. It discusses influences on Russias corporate governance from other countries, particularly the US, Germany, and France. Aspects of Russian culture and traditions are then examined to see how they might influence the countrys evolving corporate governance system. Although Russia will continue to be influenced by international standards and systems of other countries, the article concludes that Russian corporate governance will evolve into its own unique model reflecting the countrys traditions, values, and culture. Implications for Western investors are discussed.

Managing people in Russia: Challenges for foreign investors

Thousands of foreign companies are penetrating Russian markets with strategies developed on the basis of inadequate assumptions about the country and its people. Stanislav Shekshnia examines how the most common myths about Russia such as availability of highly skilled and extremely cheap labour do not fit the reality and cause serious problems for international investors. In conclusion the author shares his views on successful strategies for Russia, based on his business and research experience.

Western multinationals' human resource practices in Russia

This article presents the results of a survey of HR management in Russian subsidiaries of Western multinationals, combined with personal observations by the author, Stanislav Shekshnia. In a comparison with his 1994 study, the author concludes that Western companies are now practising sophisticated and efficient systems of HR management. Key elements of HR management that distinguish successful from less successful companies, and trends in future HR management in Russia are set out.

The Resurgence of an Entrepreneurial Class in Russia

Forty Russian managers were surveyed about their newly founded entrepreneurial ventures. The respondents averaged 32 years of age and, although possessing mainly technical backgrounds, were involved in a variety of businesses not necessarily technical in nature. Most had adopted a highly opportunistic strategy for their new enterprises. Success was seen as requiring products and services of good quality, a capable workforce, financial stability, and a respected company image. Competent employees were rated as the major strength of their organizations. Profitability was the most important business objective. The government was viewed as the major source of problems encountered.

Compensating Local Employees in Post-Communist Russia In Search of Talent or Just Looking for a Bargain?

With hyperinflation, the disintegration of a paternalistic economy, and shortages everywhere in Russia, Western firms are struggling with how to pay their Russian employees.

How to Mitigate Corruption in Emerging Markets: The Case of Russia

Russian CEOs are arguably the most experienced managers in the world when it comes to working in corrupt environments. For our analysis, we gathered data from the CEOs and owners of 111 local and international companies operating in Russia. We asked them to assess their experiences with informal practices, including the extent to which their businesses are dependent on informal deals and the strategies they deploy to mitigate business corruption. The list of specific practices and strategies assembled in the pilot interviews and media content analysis has been cross-checked with the existing typologies of corruption in post-communist societies and verified through in-depth interviews. This study presents the outcomes of our analysis, one of which is that companies tend to blame officials for corrupt activities while hiding their own internal corruption from public view. Both are dependent on the industry in which they operate, however. The paper also includes the approach we developed to understand the less reprehensible but more widespread forms of corruption such as collusion, conflict of interest, cronyism and nepotism, fraud, gifts and hospitality, lobbying, abuse of power or office, and influence peddling.

Reflective Leadership vs. Endemic Corruption in Emerging Markets

Despite decades-long efforts to eradicate it, corruption remains a major risk for doing business in emerging markets. Our study of 111 CEOs and owners of companies operating in Russia showed the ineffectiveness of universalistic top-down anti-corruption strategies at the firm level and tested a practical, bottom-up approach. We argue that strategies targeting specific business practices can mitigate corruption even in endemically corrupt environments such as Russia. The critical factor for the effectiveness of corporate anti-corruption policies is reflective leadership. We propose and describe an instrument for such leadership. We slice firm corruption into recognizable and manageable practices and offer an inventory of methods that reach out through hierarchical and network channels.

Class 6: Roles—The Four Essential Functions of the CEO

“I was around John Browne for quite some time, when he was in charge,” says Bob Dudley (UK, BP). “I saw everything, but I could not understand the board-CEO dynamics, the importance of succession and compensation issues or how to deal with them.”

Class 4: Experience—Three Dilemmas for Would-Be CEOs

“I learned from classes and from books,” says Bob Dudley (CEO of BP, UK). “But most of my knowledge came from my jobs.” Every single one of our 20 business leaders—without exception—believes that the trade of CEO must be learned on the job. Formal education provides a useful foundation, they all agree, but the skills you need to secure the top position can only come from experience.

Conclusion: Lessons for Future CEOs, Their Parents and Educators

We conclude by reviewing the implications of CEO School for our various audiences. We remind aspiring CEOs of the need to take their physical condition very seriously; to make sure their levels of ambition, passion and curiosity are high; to settle on the industry of their choice; and to keep on developing CEO skills. Their parents can help by giving them every possible chance to develop CAP, systemic thinking, emotional acumen and desire to learn from an early age. There are similar lessons for teachers—from kindergarten to high school. Foster curiosity, enthusiasm and collaboration, whatever age group or subject you teach. Meanwhile, business school professors (ourselves included) should examine their own curricula and lesson plans. Are we really teaching the subjects relevant to future business leaders?