In the course of energy sector reform, a huge array of tasks and problems had to be solved. One of the key decisions – creation of an organization and management concept, which will determine the future management system of the industry – I had the privilege to take part in.
Background:
The natural electricity monopoly had difficulty attracting investment to renew the gigantic amount of worn-out fixed assets across the country. Nearly 80% of it should have to be replaced yesterday and country simply didn’t have that amount of funds. According to the industry reform plan, one of the results was a free electricity market with floating pricing via separation of the electrical generation, its transportation and distribution, and sales. Given the high requirements for the fault-tolerance and reliability of electricity transportation and distribution all over the country, it was decided to keep these functions under the control of the state, making a complete reorganization of the existing system.
The development of a multilevel structures for organizing and managing the distribution of electricity throughout the country required the finding of a reliable and workable solution that suits all industry participants: the heads of 89 AO-Energo, the existing central administration of the industry, reforming organization and the country’s government.
To create the structure of the organization, the business processes of the existing regional natural monopoly entities were taken as the basis. The processes of several existing AO-Energos, as well as the central control apparatus, were investigated, analyzed and modeled. After the ideas and principles of management functions distribution were generated and agreed upon in the new structure, new processes were designed. On their basis, a multi-level management structure and organizational structures of new entities were designed. For vertical control over the activities of all entities, a system of KPIs with scorecards was constructed that decomposes the main goals and principles and is tied to business processes at each level. On the basis of the concept, functional duties and responsibilities of both the subjects of the system and individual organizational units within them were formulated.
As a result, a management concept for a power transportation and distribution grid complex with a multi-level structure was prepared. In this structure, functions were determined for each of the five levels (National – Inter-regional – Regional – District – Local) and their responsibility. In addition, business processes were designed, mechanisms of interaction between the structural units of the levels were developed, indicators of activity control were proposed. The developed concept was adopted and on its basis the Federal Grid Company was created first, and then AO-Energo was reformed with the creation of the following management levels. This allowed us to successfully continue reforming the industry, which led to attracting investments in the modernization of fixed assets while maintaining the reliability of energy supply throughout the country.
My work has already helped
to improve management in companies in 11 countries, operating in 137 cities
Building the Strategy Execution System
Implementation of the strategic management tools and methods based on Balanced Scorecard in a metallurgical group – the leading player on the international market.
Managing Operational Risks in a Telecom Holding
Implementing and configuring an operational risk management system to increase operational efficiency in a telecommunications group
Assessment of a KPIs Performance System in the Top-5 International Group
Assessment of the KPI-based performance management system for the Top-5 global fully integrated zinc producer and recommendations for the strategic management
Management Structure Design to Reform the Natural Monopolist
Creating the concept of a vertically integrated management structure for the reform of the natural monopolist
Business Process Optimization in a Large Group
Optimization of business processes to increase operational efficiency of the largest in CIS and Eastern Europe manufacturing holding
Assessment of the Business Strategy for a Development Group
Improving strategic management and fine-tuning the strategy of the construction holding company made it possible to achieve the shareholders’ goals
Supporting a Strategy Execution
Temporary outsourcing of the strategic management functions to the management consultant allowed to keep up the business growth rate and hold leading market position
Investment Management in a Group of Companies
Designing, implementation and fine-tuning of the investment management had enabled business development in the group of companies
Reengineering of Investment Process for Business Development
The investment process optimization with support of a new methodology for the traffic assessment and estimation secured the planned growth
Reorganization and Restructure of an Investment Group
Group reorganization and asset restructurization raised the management to the new level by boosting IRR and increasing capitalization
Finding a Business Strategy for a Leader
Finding and formulating a business strategy for a construction and installation contractor, which not only strengthened its leadership position, but accelerated its long-term business development as well
A Concept to Reform Utility Complexes
The designed concept of reforming regional utilities monopolist laid a foundation for the new integrated group of companies in the utility sector
A Strategy for Growth and Regional Expansion
Finding ways to expand for a unique business and determining the volume of investments, their dynamics and rate of return, as well as contributing to an investment decision
Business Plan for the Leading European Bank
Tweaking of an international bank’s greenfield investments into a wood processing cluster
Reorganizing the Growing Group
The restructuring of the group ensured transparent and effective asset management and enabled shareholders to focus their efforts on the long-term development
Post-Merger Integration
Designing an integrated mechanism for managing a united group and ensuring synergy from the merger of processing companies
Assess a Level of a Strategic Management for Global Investors
The tools were proved in three BRIC countries and after that it was laid as a foundation for the cross-boarder and cross-industry rating, which is supporting the decisions for tens of thousands international investors all over the glob
The Clients Are Saying:
Vitaly’s opinion sometimes dissonates with our well-established ideas, but he knows how to be very convincing
Besides the impeccable content of the study, I would like to note a vivid and convincing presentation of the results. Impressive!
Excellent response to suggestions and comments in the course of the project and an in-depth knowledge of the “Strategy Development” theme. Much was beyond my expectations.
In the project “Strategic Management Design and Implementation” it is especially worth mentioning Vitaly’s commitment, despite the external circumstance. All promises were fulfilled timely and in full. Even a bit more!
We are grateful for the high-quality and honest work and looking forward to new cooperation!
In the “Strategy development” project, the result exceeded expectations in terms of depth and quality. Professionally done work!
The results delivered actually exceeded the required scope: we received a greater degree of detail on the criteria and a more complete list in the questionnaires. The result exceeded our expectations.
I can’t help but praise Vitaly’s determination. The project has always returned on its way to the planned results, despite all the objective difficulties.
Working with Vitaly is comfortable and productive
The consistency and persuasiveness of Vitaly’s actions helped us to carry out a difficult and complex business reorganization without complications. We learn first hand how much a solid experience in a transformation means.
Your musical tastes are so-so, but your vision is impressive, complex and has a long horizon.
Strategic changes are always a challenge. With Vitaly’s participation, we felt confident in their implementation.
Apparently, Vitaly’s experience in the Norton-Kaplan’s company was not in vain. The developed Balanced Scorecard facilitated greatly our long-term management and mobilized leadership.
Thanks to Vitaly, we began to manage the company strategically
We have made organizational changes faster and more efficiently than expected from the start. Everything was very professional.
In developing and implementing the Balanced Scorecard, all the work was done in good faith. Our expectations were either met or exceeded.
Our project was not typical, as it focused on criteria for evaluating the strategic process in a broad context. We are quite satisfied with the result. We received all the information we needed.
Vitaly’s excellent quality is his ability to become quickly integrated into the team and look at the company from the inside, which allows him to achieve maximum results in the task at hand.
Vitaly really knows how to solve complex business problems!
The consistency and persuasiveness of Vitaly’s actions helped us to carry out a difficult and complex business reorganization without complications. We learn first hand how much a solid experience in a transformation means.