A. DYKHOVICHNY: There is 11:14 in Moscow, God Day. Alexei Dykhovichny is near the microphone. We receive Olga Loseva, Executive Director of Stockholm School of Economics Russia. God Day, Olga.
O. LOSEVA: Good Day.
A. DYKHOVICHNY: The topic of our program is "Executive MBA - one of the ways to invest in yourself." Executive MBA is just to enable you to find your bearing at once. I remind the listeners that we have SMS number +7 985 970-45-45 working and you can sent your messages and questions. Executive MBA is something, quite the topmost level, I as understand, for executives and top managers. Is this so or is it not? I man the topmost level in education.
O. LOSEVA: Probably, this is so if we speak about education for managers and about education in management. We do not speak about education for specialists and do not speak about universities where scientists are educated now. We speak about the people whose goal is skillful management of business. This is probably the highest level then. First of all, it is oriented at the people, I would not say this standard expression "top managers," but it is primarily oriented at the people who have already achieved a certain level in their development, have a sufficient experience of work and set the goals and tasks either to develop their company or to change something in their life or to change something in their business. Not only the people who have only one company of their own but also the people who have several businesses come to us. Along with this, in our programs there are fairly young people who probably have not the highest positions in companies. This means that if there is a certain life experience and a wish to move further, this is Executive MBA.
A. DYKHOVICHNY: What about the crisis that has been and that probably remains still, nobody knows this for sure yet.
O. LOSEVA: Well, we like to call it recession.
A. DYKHOVICHNY: Yes, this is recession. It has shown that our country depends very much on global financial markets, on oil markets and so on and so forth. Is this so?
O. LOSEVA: Well, I would not speak in such a narrow way. This crisis probably showed that all countries, at least the overwhelming majority of them, became mutually dependent in economic aspect.
A. DYKHOVICHNY: Well, all depend in a different way. Situation in China and India is different.
O. LOSEVA: Nonetheless, there are mutual connections everywhere. Our country is, definitely, a part of the global economy.
A. DYKHOVICHNY: Is this important in such situation when a country and hence a company is very dependent on global market situation who is standing near the steering wheel? When there is a storm, so to speak?
O. LOSEVA: You know, honestly speaking, I am confused by your question. Because it matters who is standing near the steering wheel in absolutely any situation. Each situation requires a manager of a certain kind, certain skills are necessary. This means that there should be such person in stable time. Everything depends on the people who do their work.
I presume that what you have meant is probably when there is a strong storm the captain should not only be confident of himself but should also have a very big courage to lead people after him risking, on the one hand. On the other hand, he should have so powerful knowledge as to be able to use them in case of any unexpected change of wind, so to speak.
A. DYKHOVICHNY: No, I meant that this might be so and this might be in a different way. But when there is a real storm and there is already impossible to do anything already, does it matter who is standing near the steering wheel and who is the captain? If you have not brought your ship to a harbor beforehand, if you have not sold your business unlike others beforehand, there is absolutely nothing to do in this situation already.
O. LOSEVA: I would probably disagree with this.
A. DYKHOVICHNY: This is good.
O. LOSEVA: You know, there is such Chinese proverb saying that when a clever person sees that a storm and a wind of change is coming he builds not a shield to protect himself from a storm but a windmill. Really, this is proven by examples of a very big quantity of our alumni - naturally, I will not mention all these examples now - any crisis, any storm and any wind is not a dead end. It means the newly opened additional opportunities. If you put your ship in a harbor - well, there are such people and there are such companies - it is probably possible to wait until the storm is over.
If you know how to use this wind for your own benefit, you can develop in an amazing way. A number of our aluminum represents examples of this. One of the persons who risked during this crisis period and reoriented his business of building constructions at a different market despite it was difficult to do this, he managed both to preserve jobs and to occupy a niche that had been absolutely vacant before him.
He is developing but is developing having preserved all jobs. We have graduate Natalya. She works in Kiev. Despite that she had a very high position in one of the companies during this period, she understood that the company would not survive on its own.
Having used all opportunities given by the newly acquired knowledge and way of thinking, the person simply started thinking about what was lacking. She understood that there was shortage of a number of IT projects for multimedia companies. She already created two or three such projects. All this happened during the crisis period. She is developing herself and the companies opened by her are developing.
A. DYKHOVICHNY: This means that not only China has managed to benefit from this?
O. LOSEVA: Of course, not only China. It is not obligatory to be a Chinese. Although their example is worth copying in many aspects in reality.
A. DYKHOVICHNY: Were there such companies in Russia? The businesses that you have mentioned are very small companies in the scope of the country.
O. LOSEVA: Well, these are not big companies. But you know, among the companies with which we work fairly actively now we have really many companies that order educational programs despite the crisis because they understand that they need to optimize business processes during this period. I do not see large Russian businesses dying. I see that in reality majority of the solid find the way out. In reality, the crisis pushed them towards optimization of business processes and making them efficient.
A. DYKHOVICHNY: They do not die, from your standpoint, not because oil does not cost $15 now contrary to what was forecasted by many observers at the beginning of the year, it costs about $80 now but because there are managers who have managed to rebuilt something inside?
O. LOSEVA: You are absolutely right.
A. DYKHOVICHNY: You bet! I do not wish to believe.
O. LOSEVA: You do not wish to believe?
A. DYKHOVICHNY: Now, I wish but I cannot.
O. LOSEVA: Why? This is really so. We are currently working very actively with Russian Railways, mostly with the Oktyabrskaya Railway. Incidentally, amazing people work there. We have started working with the Novolipetsk metal works that is in a very difficult condition now and has had such difficulties for a long time.
A. DYKHOVICHNY: Here is a perfect example!
O. LOSEVA: It has existed a long time ago. I do not say that their life is easy. It is difficult for them to live because of high costs. It has been difficult for them to compete on the international market for a long time ago.
A. DYKHOVICHNY: Besides, this industry is also cyclic.
O. LOSEVA: Absolutely right.
A. DYKHOVICHNY: Which is practically the first to suffer.
O. LOSEVA: Absolutely right. I do not say that they live happily. Of course, it is very difficult to live for them. They have to reduce many things there, many costs etc. Nonetheless, now the main forces of the company are focused on optimization and reconstruction of business processes including lean production and implementation of quality management. They are already working on this. These novelties have already started working in their company, this enables them to cut the costs and enables them to move further. They teach their people for those and there are people who understand what to do among those who study and who do not study.
A. DYKHOVICHNY: Well, these are skillful production engineers.
O. LOSEVA: Not at all. Of course, naturally, correct technologies are absolutely necessary to make an economic production facility. However, optimization of business processes is not optimization of technologies. Optimization of business processes is streamlining of work of the entire mechanism that includes improvement of quality, cutting of costs and correct orientation on the market. This can be done only by a skillful manager.
A. DYKHOVICHNY: Thus, let us answer the questions that receive via the Internet and through SMS. Well, there is a serious person who specializes in finances in Russia and is a head of a structural division in a large holding. He asks, "How important is MBA program for employment? Every large company in Russia has its own personnel reserve and there are no people from outside there." This is said by a person who introduces himself as a head of a structural division in a large holding. These are closed structures.
O. LOSEVA: First, let us start from saying that all people are different. We are currently enlisting students for a new academic year of Executive MBA program. We need to say that this year we are amazed by the composition of participants: we have very many heads of large holdings. Last year, we had financiers who decided to wait so far and to get retrained and to invest in themselves. This year, we have very many owners of large enterprises and heads of large holdings.
The question is understandable. How important is Executive MBA certificate for employment? In our country there is no such situation that exists in the US and UK: you graduate from a university, you have been hired immediately and your salary has been increased twofold. Our certificate does not cost so much. First of all, these are people who are hired. Situation in the company of the person who asks the question is such that there are no people from outside there. However, the quantity of such companies is decreasing. Judging by our experience, I can say that specialists are sought that are necessary not necessarily from the inside. First of all, experience, knowledge, skills, leadership and managerial qualities of a person are taken into account. If a person has certificate of a good university along with this, this is an advantage in majority of cases.
Along with this, people who come to us to study they come not to receive an expensive paper, it is clear, it is not a Russian scenario. People who come to us to study come to receive additional knowledge, to systematize their knowledge, to receive relations and contacts with their colleagues who study together with them, to learn to change themselves, their stereotype of thinking and to understand in which area the person can become the most efficient further. This is working. People find their way or the way of their company.
A. DYKHOVICHNY: By and large, this is a philosophic approach.
O. LOSEVA: I would not say that this is a philosophic approach. The knowledge that is received in the framework of the program is the first thing that the person receives. The second thing that he receives are relations. The third thing that is received together with this knowledge is ability to use it. Do you know what else is very important? We speak about much about the crisis, about the recession, about the way to survive in this situation. When a person comes to the program to study, one of the aspects that he learns is that all this has actually already happened. There was a crisis, there were recessions and there were various scenarios for development of these situations to. He determines his way. He goes out with an absolutely new reserve of knowledge, relations and with a European certificate that is, at least, taken into account by all European, international and largest Russian companies.
A. DYKHOVICHNY: Well, this way or the other, they ended in different ways and humankind went out of recessions and crises in different ways. They lasted for different time periods to.
O. LOSEVA: that is what we learn in the programs. We are ready, as our Natasha Shtaltovnaya working in Ukraine says, "there is no ready-made pill." There is what you learn to find solutions for all problems yourself.
A. DYKHOVICHNY: Let me ask a short question before the news. Is the program of Stockholm School of Economics is oriented at domestic Russian demand or at employment in Western companies?
O. LOSEVA: Well, in reality this is our advantage because we give a Russian certificate, because we teach, our Western lecturers convey their knowledge in combination with the Russian understanding of the Russian market. Our alumni are demanded both on the Russian and on the international market.
A. DYKHOVICHNY: Actually speaking, this was a question from the same financier. We will get interrupted for five minutes now. We receive Olga Loseva, Executive Director of Stockholm School of Economics Russia. We have news at Echo of Moscow now.
NEWS
A. DYKHOVICHNY: We have 11:35 in Moscow. I remind that we receive Olga Loseva, Executive Director of Stockholm School of Economics Russia. Executive MBA is what Stockholm School is ding. It brings this education not to masses, right?
O. LOSEVA: Not to masses.
A. DYKHOVICHNY: Not to masses. And we have SMS number +7 985 970-45-45 wiring and you can send your messages. So, what kinds of programs of Stockholm School of Economics are taught fully in the Russian language and when will we have Executive MBA in Russian? Explain us the whole situation.
O. LOSEVA: Executive MBA program in the Russian language begins on November 4. We practically accomplished enlistment of students to this program. We had a very big competition. But if there is certain interest in this - this is a program new for us - if you have certain interest, it is easy to find us in the Internet. Get in touch with our Executive MBA department and you will be told everything. We already have this program. Last year we promised this and this year we created it.
A. DYKHOVICHNY: How long does the education last?
O. LOSEVA: Education lasts for two years, this is a modular system, it takes five days per month.
A. DYKHOVICHNY: Without the need to quit the job?
O. LOSEVA: Without the need to quit the job.
A. DYKHOVICHNY: Whom do you enlist and whom you d not? Are there any exams there? How is all this built?
O. LOSEVA: Yes, we have obligatory exams, three stages of entrance. First of all, we pay attention to experience of a person. A person writes several essays for us to understand what he has managed to do in his life and what kind of person he is. Recommendation letters either from management or from partners are obligatory. When we select all this a person passes an exam: this is testing in mathematical logic if this is an English-language program in English and there is an interview later. We pay very much attention to the experience that the person has and to which extent the goals for which he has come to the program correspond to what we can give him. This is probably all. In any case, I can say that for General Management program in the Russian language and General Management program in the English language we recruit people with managerial experience of not less than five years. We have a very level of participants and now, although it may seem strange, we speak about recession all the time and discuss all the time how much people wish to study this or do not wish to study this and if they wish to spend money on this. We have a very big flow of candidates who wish to study under the program. That is why we start a program already in the Russian language on November 4. Nonetheless, we keep receiving applications that we try to consider because the program takes place for the first year.
We have a fairly big quantity of applications for General Management program in the English language too. The deadline for submission of applications was today but we would evidently prolong enlistment to the program. It will start only a couple of months later, we will have to prolong enlistment to the program and to watch the candidates really seriously.
A. DYKHOVICHNY: Is availability of higher education mandatory.
O. LOSEVA: It was so natural for me that I did not even speak about this. Yes, of course, higher education is mandatory.
A. DYKHOVICHNY: Anna asks: What are the main competitive advantages of your program in comparison to other numerous MBA programs? For instance, three or four years they were very numerous. Did this situation remain or did it somehow change? How will you compete against Skolkovo and according to which parameters?
O. LOSEVA: Well, this question is a little broad.
A. DYKHOVICHNY: We have time.
O. LOSEVA: The first answer - it seemed to me I told you this last year already because we already met - is that I never speak about competitive advantages. I have sold very many different products in my life. This is a fine product, this is an intellectual products. That is why I can say what our school gives. If it complies with what a person needs, this is a competitive advantage. His neighbor may need something different.
Our school means an international European certificate. Only a European certificate, a certificate of one of the leading schools of the Baltic region, Stockholm School of Economics. This is economic school No. 1 in the Baltic region. It is recognized both in Russia and abroad. In Russia the school has a very slid name, it has been here for 12 years already, this is our advantage, we are known by employers too.
The second aspect is combination of Western knowledge, Western methods, Western experience with perfect understanding of the Russian market. All our lecturers including the Western ones have been teaching here for many years. They do not only teach but also provide consultations, work as business consultations and participate in programs for work with Russian companies. Naturally, our main asset is represented by our alumni who participate in life of the school permanently. This mans that when a person comes to our school he receives a very real powerful network not only among the fellow-students but also among the aluminum. This is a huge quantity of joint projects, huge opportunities to find the job, huge opportunities for growth and cooperation with the people with which you speak the same language.
A. DYKHOVICHNY: Do you agree that MBA programs in Russia are numerous?
O. LOSEVA: Yes, I remember this question. Pardon me, they are numerous but.
A. DYKHOVICHNY: Well, when you say "numerous" you man that, in general, there are more than necessary of them and that there are many programs that are not quite compliant.
O. LOSEVA: I can answer this question at once. More than 100 programs called themselves Executive MBA formally last year.
A. DYKHOVICHNY: Are these only? Without Executive their quantity is probably bigger?
O. LOSEVA: It is even bigger. On Saturday, we participated in a meeting of the Russian Association of Business Education of which are were a member. One of the most serous cares of this association is the fact that there are no significant rules and laws yet and they are simply being created and I would not even speak about this very much. There are very few programs that really comply with the international format. I would not say for sure, there is probably a dozen of them. There are also very few programs that comply even with the current needs of the Russian market for skillful managers.
As to the question how we will compete against Skolkovo, we will not compete in any way. We are oriented at different target audiences. We take this initiative with a real deep respect and Skolkovo takes Stockholm School of Economics with deep respect. They have their own target audience. Probably the costs of the program are such that this is the highest group of the Russian business and a very narrow circle of people. I repeat, these are people who need an international certificate need. Incidentally, we have many people unlike Skolkovo. Skolkovo is oriented mostly on the Russian market yes? We have very many people who are, for instance, in the new groups there are very many people - owners of companies or top managers, heads of large divisions of the largest Russian companies who are oriented at entrance into international markets and at work with other markets. They need this knowledge of not only rules according to which the international market is working but also international culture.
A. DYKHOVICHNY: I would like to ask you, literally in ten seconds. Did not you think that MBA certificate got devaluated because the quantity of schools was numerous and they did not always comply with the necessary level? We have three seconds.
O. LOSEVA: Well, we discussed this issue, probably even last year. Probably the name of MBA got devaluated and not the certificate. Hence, certificate of Stockholm School cannot get devaluated.
A. DYKHOVICHNY: Thank you, Olga Loseva, Executive Director of Stockholm School of Economics.