Russian Business Behaviours

Cynthia Gordon and Christopher Graham came to Moscow with very different companies. MTS employs over 25,000 people, while ETI Vostok employs around 90. This chapter is the product of a series of conversations between the two writers in which they reflect upon their experiences as foreign senior managers in Russia. Through a series of verbatim dialogues, quotations and comments it outlines their assumptions about the country before coming to Russia, observations on Russian management style and corporate structure and the changes in their own styles that they have adopted in order to operate more effectively in the Russian working environment.

Before Russia – some expectations

At the time of writing Cynthia has been in Russia for 24 months and since Christopher has worked in and out of the CIS for twelve years, her memories of what she expected before arriving in Russia are a little fresher. One of her initial feelings was that of fear, and it seems that this is a common feeling amongst newly arrived executives in Russia. Cynthia’s fear was simply that of the unknown – a normal enough reaction, but Christopher points out how many newly arrived people have a really deep rooted fear of physical violence – they really think that they will be gunned down in the street or kidnapped so that their companies will have to buy them back. The reality is that Russia is not significantly more dangerous than most other global locations and in fact a lot safer than many. When it comes down to it, Russia has very bad press in the West - yes there is organised crime but it will not affect you unless you make some pretty stupid decisions about the way you do business.

In short, if you use common sense in business and on the streets, Russia is a perfectly safe place to do business, different from home, mysterious even, but safe. As Cynthia says, “the idea that it’s dangerous here is complete nonsense and I think it's a wrong perception shaped by the media.”

On her list of pre-departure concerns, Cynthia mentions the weather: “I thought the weather would be really difficult. But it's not at all. There's no such thing as bad weather, there’s only bad clothes.”

In fact the weather itself is not challenging even if your work takes you out to Siberia - as Christopher says, “life in Russia is geared to cold weather and you really don’t notice it.”

There are, however, two weather-related issues that are worth looking at. The winter season yields very little sunlight in much of Russia and this lack of sun very simply makes people depressed. SADS is now recognised as a syndrome in Russia but large numbers of people – and this includes foreign managers - are probably clinically depressed through much of the winter. The purchase of a SADS therapeutic lamp for yourself before leaving home may be a wise thing to do.

The other climate-related issue is that the tough conditions seem to produce endurance and stamina in Russians (good) but also a feeling that they can’t control things, that whatever they do in politics, at work or with life in general, everything is beyond their control. This is a deep–seated trait in the Russian psyche and Christopher mentions that one of the biggest challenges in his years running an SME in Russia has been to try to turn the ‘can’t do’ culture into a ‘can do’ culture. Introducing new ideas, concepts and approaches can take longer in Russia than in other cultures. It is, as he says, “necessary to show that this CAN work in Russia – to fight the pessimism and feeling that we can’t change things with practical demonstrations that new approaches can work here. Russia is a nation of engineers and clear proofs and examples that your initiatives do work are vital to encouraging change.” Patience in this will pay off – rushing and trying to force change will not.

There is no doubt that the Russian language presents its own set of problems and Cynthia says that, “the language of this company [MTS] is Russian so the first time you sit down at your PC and you see 98 per cent of your e-mails are in Russian and you cannot recognise the names ...... that was a big shock.”

Even if you come to work for, say, a British or Italian company you will still be in the tiny minority of non-Russian speakers, so some way of coping needs to be constructed. Clearly most corporations employ small armies of interpreters, but do be aware that the quality varies a lot and if your work is highly technical do ensure that the interpreters have the necessary academic background. Equally, if you have never been interpreted before, do be aware that you need to speak in clear sentences and allow time for the interpreters to collect their ideas and express them to the other party. Long, rambling, jargon-ridden sentences with no thought breaks for the interpreters will not work. In short, give the interpreters a chance to do their jobs.

The standards of English amongst Russians are rising all the time but as Christopher says, “my experience is that Russians do not want to lose face by admitting they don’t speak or understand English. If someone smiles and says nothing it is likely that they have no idea what you have been talking about.” The best way to ensure comprehension is to ensure that written notes are given to people to support what you say. Also to learn to pace and grade your language. Clear and simple without being patronising – a fine line but one you need to strike.

I wish someone had told me that ….

Christopher has worked in and out of Russia for 12 years or so – he reflects here on some things he wishes he’d known before he arrived.

“I simply had no idea how well educated people are – the USSR had its faults but the education system was not one of them. People will often have two educations – a first degree in, say, physics and then a second one in law or something equally unconnected. My first driver in Baku was a genuine rocket scientist – worked on the Mir project – what a waste of talent.”

There is a contradiction, however, in that in 21^st century Russia, at least in Moscow and the larger metropolitan areas, there is an acute skills shortage, especially for young managers in the 25-40 age range (notably in areas such as banking and hospitality). This is causing huge wage inflation as companies outbid each other to get key staff. The contradiction is caused by the mismatch between what schools and universities teach and what employers need, and until there are fundamental changes in the educational system there is no obvious way out apart from increased immigration. The political mood is probably against this.

“My image of Russians was cold, poker-faced and unemotional. I could not have been further from the truth. Russians are very much ‘people people’ - they are emotional and sensitive and, most challenging for me is the fact that they bring their emotions to work with them. They take things very personally.”

The implications of this revolve around the fact that staff appraisal systems often need to be adapted in order to be effective in Russia. The HR team and line managers need to make it clear that it is a professional appraisal of the individual as an employee and not as a person. It can otherwise be a very negative and demotivating exercise.

“I knew there was a lot of bureaucracy in Russia – it was one of the cornerstones of the USSR as far as I can see – yet I did not realise quite how challenging it would be to deal with. I think it may be easier for big firms with more clout and more manpower than for SMEs. It can be cripplingly time-consuming and feel so very pointless.”

The bureaucracy is indeed daunting and no amount of complaining by foreign business people is going to make it go away. In terms of easing the pain, the best approach is to submit your plans and requests in writing first, ideally to a named individual whom your research indicates will be helpful. Being foreign does mean that generally you can aim ‘higher’ up the bureaucratic ladder and see senior people more quickly, so take advantage of this. Equally, do remember that nyet may not mean ‘no’ – it just as likely means “please approach this in a different way.”

“I suppose I thought that the USSR was dead and that was that. But the reality is that it has left a very powerful legacy. I wish I had thought more about how it would make people behave; make them cautious about standing out from the crowd and make them generally untrusting. These characteristics are easily discernable in Russian society and have an influence on how people operate in the workplace.”

Cynthia Gordon