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(A) the organizational structure does not clearly show what value the
company creates for its consumers. It is just a formality, sometimes
illogical, created for specific, "respectable" people.

(B) Strategic planning is disorganized.

(C) There is little development of management systems, and at best, they
have a training plan/program.

(D) Often, there is a total absence of a performance control system;

7) The company's core values are not defined, and corporate culture is
not actively developed. Corporate culture is not oriented towards reaching
strategic goals: widespread cronyism, mutual understanding and forgiveness
without demands, nepotism, distrust of hired managers, almost mandatory
presence of an "observer" (most often the CFO or an accountant);

8) Management of companies is suffering from strategic myopia - the
formation of goals and objectives for the strategic plan is focused on
the short-term - a year, i.e. difficulties with the real strategic
vision/planning;

9) Based on the configuration of the Pyramid, management is mostly
composed of "good supervisors," rather than "leaders" and
"businessmen", i.e. many just survive, instead of trying to market or
innovate.

Prognosis

This a gloomy picture for KRU companies. Nevertheless, it is our business reality. Of
course, not all companies are subject to such dispiriting descriptions and
characteristics. There are quite advanced and sophisticated companies that can
compete with foreign competitors, however, they are the leaders and they are not
the majority. Unfortunately, the majority of our companies remain at a very low
level of development, which naturally raises the question: "In this situation, how
can a company continue to exist for more than one year and earn money?" The
answer is primitively simple - something is better than nothing at all. Without any
full-fledged competition, you can do slipshod work and still make a profit.

It is clear that this kind of situation will not last for long. We are already seeing
significant progress in the quality of management in domestic companies, which will
accelerate as the country integrates into the world market through the Customs
Union, the Eurasian Economic Community, and the World Trade Organization.
These processes will lead to a more traditional market consolidation, when the
market will be divided among the stronger and bigger players, while sleeping and
unprofessional companies will simply wither away. This is why it is wiser not to wait
for increased competition to push you out of the market, and to use the temporary

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