Monday, January 16 2012 20:23
Management MIX on top of management consulting
ArmInfo. Interview with Raffi Semerjyan, CEO of Management MIX Consulting Company
Mr. Semerjyan, your company is one of the first companies to emerge in the Armenian consulting market in early 2000. You have already had your business segment. What is the difference between the Armenian consulting market and the similar markets in other countries where Management MIX is represented in?
Named CSP, a branch of the French company, we entered the Armenian market in 2000. Later this year we have been renamed into Management MIX. The company serves offices also in Cyprus and Lebanon. The Cyprian office operates mainly in the markets of Central and Eastern Europe, the Lebanese branch works in Arab countries, while our office in Armenia deals with customers not only inside Armenia, but also in Russia and Central Asia. We offer a full range of modern consulting services that underwent a stage of thorough testing and have become an integral part of the consulting management model of Management MIX developed by our company and registered in France. The model consists of 9 components, such as strategy, human resources, marketing, customers, IT that are adjusted to the macro and microenvironment of every country. Own effective model ensures us against immediate competition in the management consulting sector, though we regard it as a negative factor hindering further development of the market, know-how solutions, new knowledge and skills.
As for the specifics of the Armenian market of consulting services, I think, consulting companies specializing in narrow segments, for instance, marketing or HR that are highly in demand now, are prevailing here. It is true that since the very beginning of its activity in Armenia, our company has successfully promoted the full range of its consulting management services also by consulting customers on the importance and necessity of consulting management.
What segment does your company serve now? What about your tariff policy in Armenia? Management consulting is durable and expensive process. This service can be regarded as investment in intangible assets. If these are investments, what is the term of return and whether they are paid off?
Our customers are big companies of Armenia that make up about 80% of our customer base. These are mainly private companies, though we have worked also with the state sector, including the Economy Ministry. Among our customers there are producers and processing enterprises (YBC, Noyan, Grand Tobacco), lead banks (ACBA-Credit Agricole Bank, Armbusinessbank, Ameriabank), as well as loan and insurance companies (FINCA, RESO). We develop both short- term and long-term relations with these companies. Our companies participate in implementation of management projects with the staffs of these companies throughout the process.
Well, investment in consulting can be regarded as investment in intangibles. The term of return like in the case of any investment depends on many factors and is very specific. It is possible, however. Right investment will have a positive effect. Ideally, management consulting allows a company to develop. After the project is launched, and in case of the right use of the received resource, sales or return on capital employed grow within a month. As for our tariff policy in general in Armenia as compared to other countries we work in, it is much softer. For instance, a training course by our specialists in Paris costs at least 400 EUR, in Beirut - $200, while in Yerevan it is just 20,000 drams.
If I am not mistaken, Management MIX stimulates also foreign investments in Armenia, participation of foreign financial organizations in capitals of the local companies. Have you any new projects for 2012?
Well, our activity aims to raise direct investments in Armenia and we have already accumulated significant experience in this field. For instance, it was our company that consulted Credit Agricole for participation in the capital of ACBA Bank. We have many projects also on investments in the food industry. In 2012 we are planning to promote foreign investors' solar energy projects in Armenia.
What is the real demand for consulting services in Armenia?
The market is developing constantly. Today some companies have finally reached the stage when they understand that they should develop observing certain laws and rules and do it properly. It is the achievement of also the consulting companies that try to reveal the hidden demand through consultations with potential customers. Sure, services of consulting companies and private consultants are in demand by big commercial companies that have development plans. The companies that prefer years-long experience of work for their permanent customers to development and expansion do not pay much attention to consulting services.
What about the situation with human resources in the consulting market?
Considering that the management sector was not developed in the Soviet times, we have just human resources with university certificates. We have to prepare from them serious consultants with new knowledge, know-how, and practice in foreign companies. We often invite consultants from the Armenian Diaspora. All together, it is a very productive method to train highly qualified human resources. Everyone knows such ideas as Fordism and Toyotism. So, why shouldn't we create our human resources? Qualified HR is our value and the major task.
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