ISO Congress 2005

Business seminar, Saturday 16th. April, Copenhagen.

10.30, Sourcing/Outsourcing East Europe.

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Lecturer: Troy Abrahamsen, managing director, Samuelsons Polska Sp.z o.o

39 years, worked in East Europe more than 6 years, including Russia, Baltic states, Czechia, Slovakia, Hungary as well as UK, Germany and Scandinavia. In shopfitting since 1984.

 

Resumé (for the whole PowerPoint presentation please contact iso@thbailey.com):

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Demography:

Poland has a population of almost 40 mio, 95% catholic. Slavish languages, 7 country borders, bad road infrastructure, VAT 22 and 7%, 0% on food.

 

Since 1989 Poland has changed into a democracy with market economy, taking benefit of low labor cost and being Europe's central gateway Eastward.

 

Inflation rate 3,5%, GNP growth over 5% (between 4-8% annually for the last 15 years!)

Per Capita USD 5.429 (2205 forecast) grown from 4.803 in 2002, however still less than half of the European average. Huge foreign investments and EU subsidies.

Unemployment rate, p.t. decreasing from close to 20% (a third under age 24).

Corruption and crime is a problem to be considered.

 

The typical Slavish person, influenced by Polands tuff history, is defined as:

"On one side a person with a lot of depth and culture. On the other a person missing basic understanding of order, clarity and rationality, which means the person will never create a development by itself, and will always need clear guidelines."

 

Troy's personal experience...

points out 6 major challenges to "westerners" doing business in Poland:

1) Language

2) legislation

3) Working culture

4) Bureaucracy

5) Corruption

6) Socio economy data and other data complex issues.

 

And he finds remarkable differences in business culture from "westerners" such as:

- Service level

- Own (personal) winning culture

- Lack of common sense and basic logic

- "This we already tried!" and "This doesn't work in Poland" attitude.

- No respect for deadlines.

- Short term decisions  -  ad hoc management.

 

He also find a mentality among people of age 45-50 + that he illustrates:

- People who do lots of work, make lots of mistakes.

- People who do less work, make less mistakes.

- People who do no work, make no mistakes.

- People who do no mistakes get promoted! 

 

But there are positive signals from the younger generation, that appreciate strong, western style leadership with high moral and ethics, no tolerance, but respect and acceptance of the differences.

 

Some good advice...

by Troy's own experience, if you consider sourcing from or outsourcing to Poland:

- Establish a local network in whom you can trust.

- Get the young people into your organisation.

- Develop an "everything is possible" attitude.

- Secure basic and mutual trust within your organisation.

- Keep financial control through your own controller!

 

Among the biggest mistakes, that are frequently observed when outsourcing are:

- Do not expect low prices automatically, nor acceptable quality!

- Do not trust agreements, times, terms and conditions.

And be sure to....

- KEEP CONTROL, especially financial. Employees are loyal to their immediate boss who is

  visually present, and employed them  -  not to the company/their real employer!

- React immediately on negative signals!

 

And forgetting the business, how do you enjoy your stay as an expatriate?

- Bring your family, avoid week-end pendling.

- Learn, travel and enjoy the country you are in, nature, culture.

- Maintain high standards of moral end ethics.

- Accept "you are rich, they are poor". Don't be ashamed.

- Learn the language.

 

So what can go wrong?

Troy's answer is: Everything!

 

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Which all reminds us of Murphy's law: "If anything can go wrong, it will!" And our answer to that has always been prevention, trying to take everything into consideration in advance!

Which you can only do, if you know what it's all about, which again is the whole idea of ISO:

 

         Get knowledge of the industry you are in, and be one of the winners of the future!

 

                                          Why ISO's conclusion to the lecture is:

                           DO not miss next years ISO Congress, 8.-11. June 2006 in Poland.

                                Please note the dates NOW, and come and see for yourself.

 

                                                         ISO Information Office

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