OREANDA-NEWS. On 10 July 2008 was announced, that  Mirax Group held the elections of the Chairman of the Managing Board. This created the first precedent in Russia of a transition from owners’ dictatorship to free choice of employees. Alexei Kunitsyn, formerly First Deputy Chairman of the Managing Board, became the new Chairman of the Managing Board. Maxim Privezentsev, Ex-Chairman of the Managing Board, who is also a shareholder of the Corporation and a member of the Board of Directors, will concentrate his efforts on strategic issues

The decision to seek a hired manager to head the Corporation was taken two whole years ago. Major shareholders of the Corporation decided to withdraw from operative management and concentrate on developing new projects. These won’t be limited only to development projects or only to Russia. For example, Sergey Polonsky said that he is currently working on over 10 ideas of applying high technologies in various industries. Besides, the Corporation plans to expand into various countries, including India, Singapore, Turkey, Vietnam.

“In seven years we have come a long way from a small company of only three people to a large Corporation – one of Europe’s leaders in development,” Sergey Polonsky pointed out. “Now it’s time to destroy the last stronghold of autocracy. Our next task is to spread out tentacles all over the world, becoming the largest international developer”.

As the first stage of the election process, all managers were requested to nominate candidates for the position of the Chairman of the Managing Board, upon which three candidates were selected who received the strongest support of their colleagues. Besides Alexei Kunitsyn, they included Alexei Pronyakin, Vice-President of MIRAX GROUP, and Sergey Sadovnikov, Deputy Director for Construction. According to the shareholders, all three candidates satisfied the requirements set for the Chairman of the Managing Board.

Candidates addressed their electors and voiced their strategic programs, after which on June 26 open debates and the election itself were held. The results of counting the ballots showed that Alexei Kunitsyn won with a small advantage. This goes to show that the company has several strong leaders capable of managing both a separate subdivision of MIRAX GROUP and the whole Corporation.

According to Alexei Kunitsyn, “The most important resource of a company is its human capital. A modern corporation is governed not by means of autocracy, but through creating conditions where a person is free in making his or her decisions and is at the same time prepared to take the responsibility for them. Therefore my major task will be creating such conditions for self-actualization of all people employed at the company”.

It is impossible to lead us astray – we don’t care where we go.

The recent elections became one of the stages of the new management system called “Business Free Ride”, currently being implemented at the Corporation. The essence of it is the absence of management decision-making patterns, flexibility and constant readiness to change. The Business Free Ride system was developed in view of the new current conditions. As the quantity of information in the world doubles every 18 months, a centralized management system is unable to function and at the same time keep up with the speed of changes in its environment. The new Business Free Ride system was tested on MIRAX GROUP’s project in Montenegro, as well as on the Sungate Port Royal Hotel management project in Turkey, where it demonstrated its superior efficiency. Top experts were engaged for its creation, including Kjell Nordstrom, John Tschohl, Tom Peters and others.

The first step on the way to Corporate management changes was the direction to abolish orders, under which it was decided to oblige managers to persuade their staff rather than give orders. In the opinion of MIRAX GROUP shareholders, managing people by means of the old system developed under totalitarian system, both in Russia and in other countries of the world, is impossible. Especially at such a large Corporation.

According to Sergey Polonsky, “What’s most important in business today is the speed of change. Under such conditions you can’t achieve striking success by following long-term plans. There are so many new inputs, new information, that you always have to make decisions, always have to change. It’s like riding a snowboard on unbroken snow. You don’t know what may happen in the next 5, 10, 15 meters, but at the same time you’re ready for everything due to you skills and professionalism. This is what Free Ride is all about”.

Introducing a system which implies absence of rigid schemes and patterns does not mean a retreat from the vitally important standards under which the Corporation has been operating from the time of its foundation – quality, schedules, and high level of design. Sergey Polonsky said: “These are the points of strictest control: a step astray means immediate execution”. The terms of Free Ride are similar – on your way to absolute freedom there are dangerous stretches where you have to act with maximum efficiency.

And one more thing: a good coach will never take students for a free ride without first testing them on a simple route. There is a very simple rule at the Corporation: “Do everything well, and everything will be well”. At the same time it is important that employees enjoy their work. According to Alexei Kunitsyn, “you can become a medium-level specialist by going to college and getting a good education. But you’ll never become the best unless you enjoy what you are doing”.