new managerial leadership competencies: key principals of corporate culture andrey mladentsev chief...

New Managerial Leadership Competencies:

Key Principals of Corporate Culture

Andrey MladentsevChief Executive Officer

01.10.2004

Story of Nizhpharm

Development of export system2004

Quality Policy Implementation2001

Implementation of Business Units, concentration on target segments

2003

Transition to a marketing & sales-oriented company2002

Reconstruction of production facilities2000

New management team1999

EBRD investment of $10 million1998

Development of export system2004

Quality Policy Implementation2001

Implementation of Business Units, concentration on target segments

2003

Transition to a marketing & sales-oriented company2002

Reconstruction of production facilities2000

New management team1999

EBRD investment of $10 million1998

Nizhpharm’s Sales

17 613

23 77425 790

33 075

45 964

5 5484 3093 0382 3512 240

35%

8%

28%39%

1999 2000 2001 2002 2003

Sales, thd.USD

Export Sales, thd.USD

Sales growth

Nizhpharm’s Sales in Russia

1,96%

3,27%

3,94%

1,82%

2,52%

1,71% 1,75%1,94% 1,94%

1,44%

1999 2000 2001 2002 2003

vs.Russian competitors

vs.Foreign competitors

Sales Concentration

14,0% 11,7%16,1% 15,9% 16,5%

41,6%38,2%

33,7%28,3% 25,3%

10,6%

10,4% 14,9%16,8% 21,1%

4,3%5,9%

10,9% 15,8%18,3%

1999 2000 2001 2002 2003Alimentary tract and metabolism Dermatology

Genito-urinary system and sex hormones Musculo-skeletal system

18,8%

81,2%

Alimentary tract and metabolism

Market Share = 1,1%

Alimentary tract and metabolism

Market Share = 1,1%

Dermatology

Market Share = 8,12%

Dermatology

Market Share = 8,12%

Other ATC classesOther ATC classes

2003

Concentration on Target Segments

Musculo-skeletal system

Market Share = 8,35%

Musculo-skeletal system

Market Share = 8,35%

Genito-urinary system and sex hormones

Market Share = 4,4%

Genito-urinary system and sex hormones

Market Share = 4,4%

Our Mission

We intend to continuously

meet the health needs of

our customers with high-

quality pharmaceutical

products

Corporate culture

System of values, rules and believes shared by all personal of the company

• Target market concentration

• Personnel (Organizational Changes)

• Processes (TQM)

• Quality (GMP)

Company effectiveness

• Chief Executive Officer

• Personal

• Eagerness for changes

• Coincidence of interests and goals

• Objective valuation (KPI’s)

• Planning

• Operative decision making

Internal Information System

• Managements reports

– Weekly– Monthly– Quarterly

• Development of KPI’s and ВSC systems

• Case Studies

• Intranet

• Corporative newspaper

Interests of Stakeholders

Common interests and goals

Owner

Director’s Board Managers

Other groups

Search for common interests

• Permanent communication

• Inner company brand

• Corporate culture

• Outdoor trainings

• Brainstorms

• Joint Studies

When interests do not coincide• To find common interests

• To change those whose interests cannot be taken into account

Philosophy of Development

Company index

Growing leaders

Retiring leaders

Strategy of success

Unity of goal of the Company with goals of the personnel