Changing Russia~ Patience Pays!

The American or Western visitor or businessman has a special challenge in fitting into the colorful and exciting environment of an evolving Russia. The world is not really so flat as to obscure the character of a people, though superficial similarities make these defining traits less visible. Even in this high-tech world, we need to understand the deeper meaning of a people, including those cultural elements that make them on occasion behave differently. Although Russia is in a great state of change, the effects of a thousand years of history are not erased in a decade or two—if ever.

After over thirty years doing business in Asia and Europe, I went to the new Russia in 1991. The contrasts with the rest of the world were amazing and at the same time stimulating. I was fortunate to gather around me in Russia some of the most dedicated, hard working, ethical, intelligent, and enjoyable young people I have ever worked with. I found a mutual sense of understanding and a team spirit toward the common goal. I started a telecom company and lived there for six years, managing the task in the cauldron of the chaotic residue of the Soviet Union and the stumbling progress of an emerging New Russia. With such smart men and women in Moscow the venture was successful, providing advanced telecom services to Fortune 1000 companies in Russia, to major Russian businesses, and to diplomatic offices, including the American Embassy.

Russia has been the highlight of my international business career—enriching and enjoyable.

Learn more. Buy here  “Walking on Ice, An American Businessman in Russia”

HELP A RUSSIAN?

Russians, like everyone else, need help once in a while. But, helping a Russian, they say, is like trying to save a drowning man who won’t give you his hand. I have surely had that experience at times. It is a pathetic experience, and so often one that I have a hard time getting past.

We all live in the same world and are here to help each other. But, the Russian often questions the motive of the one offering his hand. Once I had visiting me a man of notable achievements in the Russian film world. I had a contact in Hollywood who I offered to introduce to him. His response was, “Why would he want to help me?” The presumption was, of course, that the other man has his only his interest solely in mind. As Russia moves into the larger global stage, the individual will realize that, in addition to self-interest, there is a great value is simply helping others when its needed. That way, one finds his place in the global world of mutually beneficial relationships where things get done on trust.

How to work successfully with Russians, in these changing times, is covered from different angles in my book “Walking on Ice, An American Businessman in Russia.”

Buy here  “Walking on Ice, An American Businessman in Russia”

Russia~ Where everything is difficult and everything is possible!

 An early reply I remember hearing in Russia was “Nyet, it can’t be done.”  It was a common challenge. Then I learned how to respond. “I realize it is difficult,” I said, “but if you were to do it, how would you do it?” Then I got a different response.

It is understandable that the Russian automatically says “no.” “Yes” burdens him with personal responsibility, a character trait seemingly in short supply amongst Russians. He knows from experience, that even if theoretically it can be done, something will surely happen to screw it up. So why bother and then take the blame?

So appealing to the “how” of a problem immediately appeals to a Russian’s sense of resourcefulness, a character trait in great abundance. The Russian spirit has for centuries struggled against adversity. Their inherent penchant for survival has prepared them for getting around the obstacles of life and supplying solutions, sometimes unusual Russian solutions, to get the job done.

With the young today, you get things done. That’s why relationships are everything in Russia. Today the aggressive young man or woman might well respond to a request requiring responsibility with an unqualified assurance of success.

Buy here  “Walking on Ice, An American Businessman in Russia”

Business in Russia, Again.

“Doing business in Russia is like doing business anywhere else, but different.”

Now that I am getting involved with new ventures with Russians and/or on Russian soil, I am reapproaching all I have experienced and written about in my book, “Walking on Ice, An American Businessman in Russia” and measuring how things have continued to change. It seems the positive has become more positive, and the negative more negative. But there does seem to be hope. “Hope dies last in Russia” a respected business friend said once. The fact is the opportunity, if carefully developed, is there and promising.

Progess is inevitable, because that demarcation line between the old world and the new is every day moving upward. The line is now at about age 45 – those below are bringing new thought and energy to the Russian world. These younger Russians are well educated, experienced, responsible, and dedicated. Those over that line are to one degree or another still in the mindset of the past. That past is not just the Soviet past, but the autocratic past of a thousand years. But, even those in the younger group, have lots of inherited mindset to change. It is possible, I firmly believe, to be an effective, successful, responsible member of the greater world and still enjoy the honored cultural identity of being Russian. But, “In Russia, everything is difficult, and everything is possible.”

Buy here  “Walking on Ice, An American Businessman in Russia”

The Troika Today, Putin, Medvedev, and Luzhkov?

 In Russian politics, there is always the “troika,” like three horses unevenly pulling the sleigh thorough the cold and rugged Russian countryside. I had wondered if or where was the third horse with Putin and Medvedev in their “tandem” harness. The third horse was evidently the mayor of Moscow, Yury Luzhkov. I had overlooked that. I thought Luzhkov was some way permanent in that city. Maybe he still does assume that, even though President Medvedev has sacked him. After all, until, in 2005, when then President Putin eliminated direct gubernatorial elections, Luzhkov had won three elections with majorities of about 80%. Moscow, in many ways, operated as quasi –state.

The troika is a perfect metaphor for the predictable unpredictability of Russian politics, and the future of a man whose wife owns Moscow real estate valued at $2-9 billion in the capital city representing about a quarter of the GDP of the whole country clearly has claim to a seat on the unpredictable  troika. Or does he? Has Medvedev shown his power by pulling the sword on Luzhkov? Or has Putin shown his power by keep his sword sheathed in this affair, letting Medvedev take the action, and maybe the penalty if it “somehow” it was a mistake. We will have to wait and see.

Buy here  “Walking on Ice, An American Businessman in Russia”

The Politics of Russian Business

One thing you have to understand is that Russia is a politi­cal country. You can’t do things alone.  Never mind about the Kremlin. That is another ocean you probably won’t have to challenge. But, even at the daily business level, it can be like crossing a big pond in a small boat. Or, as in the famous Repin painting above, like pulling the boat upstream. It is better to know you may need help on the oars and to prepare by choosing your crew yourself. In Russia they call it a “roof” which means political relationships that hopefully will be there to help when you need it. Also you hope they will leave you alone to manage your business and not interfere. In my company, we were fortunate to have trustworty and friendly connections which did just that. Some roofs leak in a storm; others are overwhelming and starve you of sun to grow in. Choose carefully.

It’s like getting married. Be careful to pick the right one as you may be with them a long time. So often I found Americans who had made some initial contacts, came to Moscow for a week and went home thinking they had made a deal. It doesn’t happen that way. Again, here is where patience pays. Patience is strength.

Buy here  “Walking on Ice, An American Businessman in Russia”

Starting a Business in Russia~How is it Different?

"The Barge Haulers" Ilya Repin

 “Doing business in Russia is like doing business anywhere else…but different.” Business is business, many think. Yes and no. How is doing business in Russia different from, say, the United States? Here are five points I can make—there are others. 

1. Get a partner. You are in a foreign country and you need a good partner as you would a guide to climb a mountain in The Himalayas. This is the hardest thing to do, since this decision may well tell the future for you. So take time. Visit, meet, talk, listen, listen more, get advice from trusted sources, and wait. Even if you have privately decided, let things cool off and don’t jump to conclusions. Often something will surface to add substance to your decision. Check him or her out. Know the family and their connections.
2. Listen to the partner. You must hear the story from the Russian perspective. Ask questions. Listen to the answers. Ask the same question another way. Listen. Patience.
3. Understand the “laws.” In America we have laws and for the most part they are clear and you have a good idea how they may affect you. Not in Russia. Their laws, if there are some pertinent to your purpose, may be there to benefit certain parties, maybe your competitor.
4. Be ready for a commitment. So many have failed in Russia because they thought they could fly in, hire a representative, and fly out again and carry on from outside—as they could, say, in Cincinnati. You have to be there, in person, most of the time. After a few years and you have a dependable team in Russia, sure, you can leave more in their control. But, always be ready to make your presence.
5. Keep it quiet. PR releases are common in America, announcing in advance you great plans. In Russia, I learned that PR releases inform your competitor what you are doing which may well cause problems. In Russia I found that it’s best not to announce you plans, but to work it quietly as possible and enjoy the success. Stories abound of well announced new projects being blocked by some unexpected action. Keep it quiet.

Experienced vets of Russian business may well have other rules they have learned and those may well be just as important. These are some of mine.

For more read “Walking on Ice, An American Businessman in Russia”

My First Lesson ~ Getting around "No"

The Cold-War stereotype of the Russian was a man in a gray suit and brown shoes who simply said “no.” One of my first lessons in doing business in Russia was learning that image is both true and false. In the stark and crowded 21st floor room in what was to be our office for a few years I, an American nice guy with no telecom credentials, discussed some business plans with a few potential employees. It was an atmosphere of awe and wonder. “What is the crazy American talking about?” they were thinking. “Doesn’t he know this is Russia?”

 It was Russia indeed, 1992 in fact, only a few months after The Hammer and Sickle came quietly down over Red Square and the whole of what was then The Soviet Union. But these were not gray suited men or babushkas shoveling snow. These were sharp and eager young graduates, men and women, from the top technical school in Moscow. But, their initial reaction still reflected the centuries of Russian resistance to taking initiative and personal responsibility. But I quickly learned how to get around that cultural block and get something done.

 At first I presented the new business idea to the young Russians as I would do at home. But, often I would get a silence, maybe a head shaking, in any case a definite “no, it can’t be done.” They might have reasons to put forth, but those were seldom pertinent. Then the thought came to me to get on their side of the table and say, “I know it would be difficult, but if we had to do it, how would we do it.” Then, the lights would come on, the discussion would catch on fire, and solutions would come forth.

 I quickly learned that the Russian, especially during Soviet times, was often blocked from doing what he wanted, but under the new environment and if approached pro-actively, he expressed a resourcefulness like nothing I had experienced in my decades of international business management. From that start we built a major telecom company in the new Russia with a team that grew to over sixty and delivered state-of-the-art telecommunications to the rapidly expanding expatiate business community and to some top Russian clients, too.

 I also learned quickly that you have to be part of a dedicated team. With good leadership, they then will get excited with the potential of successful creativity and work hard to achieve the goal. It’s all about relationships.

Russia-Three Sides of the Coin:
A Talk for Society of Commercial Intelligence Professionals (SCIP)

Monday, I gave a talk to the Southern California chapter of SCIP (Society of Commercial Intelligence Professionals) in Long Beach. This is a group of professionals who use their background and training in intelligence gathering for commercial purposes–meaning what is the competition doing and why. I was invited to give a prospective on how to do this in Russia. There are so many myths and misunderstandings about that country I was happy to try to make things a bit clearer. Seventeen years in business in Russia, six in residence, gives me a perspective “from the trenches.”

My message was called “Russia, Three Sides of the Coin.” I wanted to express the underlying cultural foundation that surfaces in often-unexpected ways when dealing with Russians. Much is changing there, but much stays the same. The Cold War memories and James Bond movies fill us with so much drama about it all. One of my sayings is that in Russia there is much secrecy, but no secrets. Also that the basis for success is group loyalty thorough genuine personal relationships, fairness, and strong knowledgeable leadership.

As a primer, I gave a quick glimpse of Russian history beginning in the late 900s including the warring princes of Kiev hiring the Varangian (Viking) prince Ruark to organize them, the choice of Greek Orthodoxy to control the people, and the start of Russia as a nation. The resulting formula for ruling Russia, according to Czar Nicholas I, was “Orthodoxy, Autocracy, Nationality.”

I built a Power Point presentation which included maps illustrating the geographic and resulting religious uniqueness in Russia’s thousand year history and how that impacts the culture even in today’s supposedly borderless world. Maps showed what I call Russia’s “inconvenience of geography” with no natural borders, no free access to the sea, and all rivers running north into the Arctic except the Volga which empties into the land-locked Caspian.

Map of Russia Today

A geopolitical comparison with America shows a natural island of security, two oceans with world class ports, two non-threatening neighbors, productive agricultural land with a river network flowing into the sea, and the center of global communications. Americans take this all for granted, but Russia sees it as the main threat to their “greatness.”

Yet, I pointed out, that Russia and Russians have a lot going for them. Their greatest asset is their “minds,” not their “mines” (meaning their ample natural resources.) Their intelligence, determination, and loyalty impressed me from the start. The proverbial readiness to say “no” I stressed was an opportunity to ask “how” and tap into their amazing resourcefulness. The Russian woman’s search for a “clever” man is her quest for a partner who knows how to get around the “no” of congenital Russian bureaucracy and get the job done.

After the talk, I got some interesting questions. One executive from a major international firm was questioning the value of certain personnel changes between L.A., London, and Moscow. One Russian, a consultant on business in Russia, agreed with my summations and added some interesting historical and other facts.

The audience was terrific, and it was a joy to have been invited by SCIP.