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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