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1) The degree of organizational development of each company and the "Growing
Pains" of each company. These criteria will be familiar to clients of Management
Systems, who have adopted the research based frameworks developed and
empirically validated by Eric Flamholtz and used the methodologies offered by
management Systems to its clients1.

This article is indeed to report the data, my interpretation and conclusions as well
as the implications for other organizations.

Research Findings

Based upon the analytic overview of domestic companies in terms of their Growing
Pains and Organizational Effectiveness, we will summarize some of the
characteristics of Kazakhstani companies, which became apparent during the
course of research and strategy sessions for developing strategic plans:

1) In general, we observed a low level of development in Kazakhstani companies
- evidenced by the scores of Growing Pains (29.2 - bordering the red
"problem" zone) and Organizational Effectiveness (2.93 - red zone);

2) Clearly outlined (or even summarized) business platforms do not exist at most
companies, i.e. businesses are built without a foundation;

3) The lower three levels of the Pyramid are more or less developed - Markets,
Products, and Resources - 49%, 45%, and 41%, respectively (although none
of them reach 50%).Out of the four types of resources, the most urgent
problem - weak and uneducated personnel;

4) There are no long-term competitive advantages, because the top three levels
of the pyramid - Operational Systems, Management Systems, and Culture -
are inadequately developed - 22%, 26%, and 25%, respectively;

5) Operations (systems and business processes) are barely moving along. There
are virtually no optimized business processes in any core area; everything
functions based on extremely outdated methods and processes. The business
processes are not monitored or controlled, and are therefore inefficient and not
optimal. Business processes are usually not subjected to critical analysis, and
customer complaints about the shortcomings of business processes are
ignored;

6) Management systems are poorly designed:

1 See Eric Flamholtz, Towards Using Organizational Measurements to Assess Corporate Performance,
Journal of Human Resource Costing and Accounting, 2009 Volume 13, Issue 2, pp. 105-117.

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