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| One must work by rules, but live — by intuition | |
«Companion» ¹39 dated September 28, 2005 |
Experience of realization of 65 projects of $780 million in Iraq can define real success of top-manager less, than presence of three points of a support: family, work and friends.
”The initiative is not a complete freedom and ignoring of duties, but acceptance of responsibility”
Supporters of Makiavelly’s approach to management consider that if a great head is liked by his subordinates it doesn’t make any good to the business. The correspondent of «&» having visited a project-management seminar, has met several employees of Slav-Invest, a large construction and investment company with the 12-years experience which now manages construction of 17 different objects in Kiev, to Odessa, Crimea. And in absolutely informal conditions has heard from them many good words about their head Milan Pajevic. And, having visited a cosy company’s office has seen smiling and rather affable people. Therefore it came to be desirable to ask Mr. Pajevic — a mature manager and person — about his vital and business discoveries which allow to successfully develop the company, make employees happy and realize himself in other dimensions.
- First of all Your company is known for that during many years you built McDonald's restaurants all over Ukraine. How did you manage to get such a big customer?
- It was in 1996. Then we were working in Kharkiv reconstructing the house in the center of the city in which the auto-salon was to be placed. Three months prior to the termination of the project our client had gone bankrupt. And construction, naturally, was frozen. It was a pity to us to leave the object, and we ourselves started to search for the one who would promote the termination of works. Got to the heads of «McDonald’s Ukraine», suggested them to open a restaurant in Kharkiv. And McDonald’s is such a company which does not take spontaneous decisions. Under their plan the first restaurant in Kharkiv should open only in 1998. But we convinced them in the expediency of changing plans. It turned out, that «McDonald’s Ukraine» in the big country within one week opened at once two restaurants — in Kiev and in Kharkiv, two capital cities (in fact Kharkiv was the first capital of Ukrainian SSR). To us it provided direct negotiations with McDonald’s regional management. As a result we were suggested to take part in their program of development in Ukraine. By the way, now the first Ukrainian — Igor Delov has become an operating director of «McDonald’s Ukraine». And he began has career at that first Kharkiv restaurant.
Yes, work with McDonald’s has made Slav-Invest known. The most valuable what we have gathered from our cooperation is a methodology of work. It is impossible to work side by side with such a partner and not to adopt standards of its work, its western clearness, features of logistics, management, elements of corporate culture. Subsequently these acquired standards enabled us to easily get over positioned in the market, to grow up to the status of a solid managing company. Last years we manage large, complex enough investment projects.
- Foreign?
- MUntil recently we cooperated only with foreign investors. And we liked it much, in fact all is precise there, game by rules. But recently among our Clients there appeared also large Ukrainian companies. Now approximately 30 % of our clients — are local. It says about the development of Ukrainian market, occurrence of the domestic investors which understand that investments demand competent professional management. There was one problem — domestic investors are not ready to delegate power of the operating company. They finance the project when consider it necessary instead of when it is necessary.
- Why though McDonald’s entrusted the work to yours, then still unknown to anybody company?
- Firstly they saw the results of our work on start of the first restaurant in Kharkiv. There we executed not only engineering and building-painting and decorating works, but also completely created an interior on the subject had been given. And secondly, obviously, believed my experience and reputation. I was already 45 and before arrival to Ukraine I was one of the top-managers of well-known Yugoslavian state foreign-trade engineering organization which by the end of 1980th had only from cooperation with Soviet Union an annual turnover over of one and a half billion clearing dollars.
I supervised the construction of three large factories in Russia, and in 1980th was the Leading engineer of 65 projects in Iraq. I know Iraq better than Serbia and Ukraine. In this country I have grown up as an organizer of large, mainly portfolio projects. The budget of those projects made $780 million. After that I am not afraid to undertake performance of problems of any complexity.
The first question which my future Client asked then was: « And where does your family live? ». I said: « In Ukraine ». It was important for him. In fact then there were many firms which grew up like mushrooms, without history, reputation and frequently — without the future. If something happens, a person packs the suitcase and departs — search then for him. The fact of me living here with family, and children going to school here, gave the Client a feeling of stability.
- Usually businessmen aspire to get over from Ukraine to Russia, and you have acted on the contrary. Why?
- There were several reasons for that. The first — Light Industry Ministry of Russia had not paid off for the jobs executed by our company near Kursk in a small town of Shebekino (the Belgorod region, on the border with Ukraine) for which I was responsible as one of the engineering department directors. Russia had frozen our accounts and did not start paying debts because of the embargo, entered by the world community in relation to the Yugoslavian state companies because of the events taking place there. It was necessary to do something with these debts. By the way, Ukraine was considered as one of the several countries which officially had not joined embargo.
The second reason — « the ecological credit » which the French government gave to Ukraine in 1993 in order for it to liquidate the consequences of CAPS accident. The part of means was to be spent for the construction of garbage recycling factory in Kharkiv region and a factory on metal and plastic waste recycling. The credit was served by Society General Bank, which was the founder of one French firm, co-owner of which, in turn, was the company where I worked. The Frenchmen wished to direct to Ukraine an expert who would be able to organize management of this investment. (By the way, the given investment has never come to Kharkiv — possibly, was spent for patching holes in the young state’s budget.) Here so in the end of summer 1993 I appeared in Kharkiv. And in the middle of January my family arrived to me.
The third reason — the situation which had developed with the factory of top dye concentrates for the leather-shoe industry which we were building in Shebekino. It had come to bad hands and to the uttermost decline. There by means of colleagues from Croatian company Karbon I adjusted the manufacture of finishing materials (for all Belgorod "sits" on chalk — the basic raw material for such kind of a manufacture). We found buyers of the production, generally among the Yugoslavian builders who worked in Crimea, Donetsk, Sochi... So for some years I managed to repay the company’s debt and, besides, to organize works on reconstruction of the House of the Soviet trade in Kharkiv which now is called "Pavlovskiy". In comparison with the south of Russia where I had to work during the last years, Kharkiv was a real European city.
And so 12 years ago Slav-Invest was born. I created it, but was not its owner. There were other founders — the Frenchmen and Russians. Then they lost interest to the Ukrainian market and decided to curtail the activity. Colleagues persuaded me to redeem the company. And it was my most successful decision.
Already 8 years we are in Kiev. For these years I’ve become half Ukrainian. I am grateful to my wife that she understood me and stayed here with me. It was difficult to her, she had had a perfect career — she worked as an expert in National bank of Yugoslavia. Without her support, without the family center I wouldn’t be able to stay here.
- Have you ever thought of what was the success formula of your company?
- The success lays in people. One third of our management are foreigners who have brought with them the western standards of work, other third — Ukrainians, who have worked abroad and absorbed these standards, another third — Ukrainians, who have never been abroad, but worked in the Ukrainian branches of foreign companies. What is our advantage before purely western companies? They are able to work by rules, but do not know local features. Probably, they even worked in Moscow and think that can work here with the same success. No, Kiev is not Moscow, and Odessa — is far not Kiev. What to say — two identical houses, but one on Osokorky and another in Academgorodok are absolutely different projects.
Can somebody in foreign managing company think that in the end of April and in September all works on construction will stop for two weeks all because at this time the season of potatoes begins in villages? Or that a crane operator may go hard drinking and not appear at work for minimum three days? We know all these local features, we accept them as a reality and consider in our plans.
I’ll give an example. In the end of 1990th our largest office was in Dnepropetrovsk. We went to the construction institute, approached to the dean and asked to recommend us explanatory students. For teachers always see how much reasonable, perspective and arrogant is this or that student, who more than others reaches to knowledge, absorbs it. We selected five graduates, started to train them, gave them complicated objects and difficult challenges.
Now I can say that these guys are the future of our company. Sometime they will replace us on managing posts. In fact now the middle age of our company’s key employees is 50 years. It is a mature enough (not to say old) team.
We worked in many cities. And I can say, the skeleton of the company, its major labor are the people whom we found in regions. People from province are purposeful, they struggle for a place under the sun, for the status. But don’t think that we don’t give job to Kyiv people at all. All depends on the person’s individuality, professional qualities.
- What is closer to you: to give people precise instructions or just show the direction and give freedom of actions?
- Actually I have collided with fact that people do not aspire to show the initiative. It is quite explainable: during long years they were taught that the initiative is punishable. And it is very difficult to over persuade them. The initiative is not a complete freedom and ignoring of duties, but acceptance of responsibility. I teach my colleagues: « Be correct both with contractors, with Clients and with each other ». But not all are used to such game rules, there are people who are used to work under pressure.
And to those young employees with red diplomas about which I spoke, we give open space for activity for they can realize themselves.
- What in your opinion the ideal project manager should be?
- He should be a person of a team. Now I’m writing a book with the title «Utopia or How to grow up a good project manager». Why such a title? Several years ago I was called by one my companion Englishman: «Milan, I need some good project managers. It is Utopia or not?».
In answer I thought for so long that he considered it was a bad audibility and started saying “hello” to the phone. And here when I decided to generalize my experience on "cultivation" of project managers, I remembered this word "Utopia". It became a key –word when describing a portrait of the ideal project manager. Letter by letter: U - should emphasize stability as a strain; T – patience, tolerance, talent; O – optimist with a will to victory; P – professional, punctual, dedicated to work; I – intelligent, intuitive; A – it’s a leader, authority who personifies real knowledge and experience. Experience of the manager – half of the project success.
At the international conference in Peter where I made a report, I was asked a question: «Whom would you let manage a responsible project: the best for five years Harvard graduate who has no experience but owns the advanced knowledge in the field of management, or a pensioner who all the life has been working in construction, but cannot even use a computer?».
Then I responded that a large investment project I would unequivocally give to a skilled pensioner. And the graduate of Harvard I would give him as an assistant.
Our youth is very talented, it’s their time. But the majority of young people are eager to just only one thing – a fast enrichment. It’s their only motivation. The different motives move a mature person. He is eager to see results of the job, to be proud of them. For what is a successful project? First of all it is a completed project. There are so many unfinished projects around us – the monuments of human nonsense.
The ideal project manager is the one who will work well in any conditions, at any authority, at any market. The project manager - the hostage of his work. He should understand, that he "marries" his project. Realization of the project — not only success, but also defeats, therefore the manager should be ready to any most unpleasant things.
- The book which you write —first?
- When my younger daughter was born, I wrote a book of verses "Button". One more book which I will never publish, - «East Korada», about my life in Iraq. East Korada is a street in Baghdad, absolutely fantastic: its one end is like just has left fairy tales of " 1001 nights », and the second is full of up-to-date architectural constructions.
My management experience I want to generalize in two books — already mentioned "Utopia" and the following, already started, named « Fair management ». In a life it is very important to finish what is started. Most I am proud of that in life I haven’t left anything unfinished.
- How do you manage the stress inevitably arising to the person managing problems?
- This summer I have gone home, to mum. The father has already died. I miss him catastrophically— very sorry, that gave him not enough time. Mum and the mother-in-law are looked after by my friend the doctor. When I arrived, he looked at me and said: « Of you three you are the most terrible. You are my greatest problem. You have three risk factors: stressful job, genetic predisposition to cardiovascular diseases and a full inattention to the health. I have told it to you and now my conscience is released. And now think on your own, that to do with all this». I understood that it is necessary to take care of myself, even began to go in for sports— to go to pool. But the main thing — I try to separate important from insignificant, I try to not worry for each trifle, to take life in a philosophical way. One of my first chiefs, my instructor, seeing how much I worry about each trifle, on a leaf of a paper wrote the words which hang up above my table: « If you on the way to a big purpose will stop to throw a stone in each dog barking at you will not come anywhere ».
When I am concerned by something, I try to pour out the experiences onto paper, I write and I calm down. I in general write much - it is a tribute to children's dream of becoming a writer. I write letters to the wife, daughter, elder children. Sometimes I draw. It removes stress well.
Still perfectly removes stress a good cigar. I am a member of the Cigar club where people go without retinue and bodyguards, simply to smoke a cigar in easy conditions and to communicate.
Much to me gives communicating with my friends-artists. I have some such friends — both in Kharkiv, and in Kiev. I come to their workshops, inhale a smell of paints, see canvases and I forget about all the troubles.
- Why though have you chosen such a life-way?
- My parents were teachers, and the grandfather, a priest,— as bearded as I. He used to tell me: «In life there are two roads: easy and correct. Yours is correct. Nothing will be given to you easily, but nevertheless go forward. It is your road ». In the childhood I dreamed to become a writer, did not imagine myself without poetry, have graduated from humanitarian grammar school where there were only two hours of mathematics per week. And suddenly went to a technical college, having remembered the words of the grandfather about a correct way.
It is necessary to work by rules, and to live — by intuition. The concept of how to move in life I have transferred onto the company, I try to withdraw the colleagues from an easy way. We do not undertake easy projects, besides with such people do not come to us — manage on their own. Our projects are very complex, that is why — interesting.
- What is the most important in life for you?
- Earlier I thought it is job. And now I am sure: the most important are children. You may be a supersuccessful businessman but if your children have not found the correct place in life, if they do not understand the difference between good and a evil, then you are unsuccessful person. To bring up a child, to save family, attitudes — this is the largest project in life. It is rather uneasy.
I promised the children that I will leave them not property, not the real estate. I’ll leave one picture— from my friends-artists and one book of mine to each one. For now they study, are raising on legs, I will financially promote them in every possible way so that they ger the best education. My elder son lives in Rome, works on a film studio, dreams to become a producer. The senior daughter studies in Barcelona, dreams to become an artist. The second son studies in Switzerland, wishes to become the banker. And younger — the most purposeful and arrogant of all family, is going to study in England, she will be a doctor - dentist.
Each of the kids searches for his own way in life. Sometimes it seems to me, that each my child carries out one of my non-realized vital programs. I am realized through my children.
At ours’, in mountain villages chairs have three legs instead of four. On three legs they stand more stably. And I have three points of support: they are family, job and friends. There isn’t always enough time to share for all fifty-fifty, but I try.
An interview with Milan M. Pajevic
Operating director of “Slav-Invest” LTD
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