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New Managerial Leadership Competencies:
Key Principals of Corporate Culture
Andrey MladentsevChief Executive Officer
01.10.2004
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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
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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
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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
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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
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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%
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Our Mission
We intend to continuously
meet the health needs of
our customers with high-
quality pharmaceutical
products
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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)
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Company effectiveness
• Chief Executive Officer
• Personal
• Eagerness for changes
• Coincidence of interests and goals
• Objective valuation (KPI’s)
• Planning
• Operative decision making
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Internal Information System
• Managements reports
– Weekly– Monthly– Quarterly
• Development of KPI’s and ВSC systems
• Case Studies
• Intranet
• Corporative newspaper
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Interests of Stakeholders
Common interests and goals
Owner
Director’s Board Managers
Other groups
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Search for common interests
• Permanent communication
• Inner company brand
• Corporate culture
• Outdoor trainings
• Brainstorms
• Joint Studies
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When interests do not coincide• To find common interests
• To change those whose interests cannot be taken into account
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Philosophy of Development
Company index
Growing leaders
Retiring leaders
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Strategy of success
Unity of goal of the Company with goals of the personnel