Q & A
Armanzhan Baitassov ,
Chairman of the Supervisory Board of TAN media holding , CEO of the United Media Group
with the challenges and turmoil in the economy with the exchange rates , general situation , and fiscal policy ? It is something different at all times , but it ’ s always about : How to develop the business to the level that your product becomes more attractive at this very moment .
Marat : Apart from scaling up , as Eldar said , I think the issue is the basic dramatic growth of business between 2000 and 2012 to 2013 when we had the devaluation and the economy was struck with falling oil prices . Lack of confidence is the biggest challenge . Lack of confidence about how the economy will go in the country and how the market will go , because it ’ s no longer a growing market but rather a shrinking market . Uncertainty . How to survive in this environment ?
Julie : Are you talking worldwide or Kazakhstan ?
Marat : In Kazakhstan , because all our businesses are only in Kazakhstan . Apart from these other issues , I think brain drain is the biggest one . Our company lost many good people because they are moving to the West or to Russia . So , the brain drain is one of the biggest challenges nowadays , apart from uncertainty .
Siddique : So far , my issue as a CEO is luckily different . You know , running this job for twenty-six years , we really had to educate ourselves in giving a plan in the beginning of the year and executing it by the end of the year . Days are moving so fast , month to month , quarter to quarter . There are so many external factors that affect our business , and you have to really ask yourself this question : “ Am I a CEO ?” or “ Am I something more than just a CEO ?”. Then you look at yourself from many different angles . As the CEO of my company I have the feeling that I have to educate myself and there is no end to that . I need to do it more frequently than I ’ ve done before .
Anatoliy : I think , our problems are the same as what these other guys have already discussed . So , the first issue was and is – the issue of human resources , people . The second issue is that the market is shrinking – consumer power is falling down and the number of players is not decreasing but increasing .
And , of course , the foreseeable future has shrunken a little . Before , we could see things out by some years longer , we could see for 10-15 years to come , but now , only for two to three years .
Julie : We lived great in the USSR , didn ’ t we ?
Armanzhan : I would not necessarily agree that we lived great in the USSR … Planning is always useful , but not so globally . When you plan your personal life – whether you can go abroad or not – then probably it ’ s a little too difficult . Problems in business are really clear , they are probably all similar . These are a general market decline and the crisis that , I believe , came to Kazakhstan from outside . In 2014 , 2015 and 2016 it totally affected all companies . Look at any sector – construction , telecommunications , logistics or retail – anything . Just less money in the country .
The second issue is that many entrepreneurs are afraid of starting a business because of the general situation of instability . Instability can be expressed in everything : the unstable rate of the tenge , the devaluation or excessive strengthening of currency , the political instability that is very close to home . Instability even occurs in accruing taxes , and tax authorities can have different interpretations for their tax code ; instability in court proceedings , when actually in the courts , within two or three days can take opposite decisions . These things , of course , do not add any pluses . We are faced with the same problems everyone faces . And , as Anatoliy said , there are also issues with human resources . Indeed , we lack specialists .
Julie : In the next question , I will ask you to share a secret .
What do you think makes a CEO a successful CEO ? Something that people may not be aware of . What would you say is your personal secret that helps you to be where you are and do what you do ?
Eldar : I think the priority number one is reading people . This is important to be able to read people . If you find people who are better than you are , more clever than you are , to read , then you will be an excellent CEO . I think reading people for me – is number one .
Julie : I think that the main point from what you just said is not only about reading people , but even more important that you allow stronger , smarter people to be next to you – this is your success !
Makhmud : I have a slightly different
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