Georgy Gens, President of Lanit Group of Companies, tells us how he makes decisions, why sometimes it is better not to hurry even though he doesn't like to hesitate; how his friend prevented him from being too credulous, and why the expert estimation and criticism are important within the company.
1. How do you make decisions?
My principle is: I discuss absolutely everything with my executives even if something is obvious enough for me. Even in this case I discuss everything with my closest executives. In particular, on Saturdays from 11a.m till 1 p.m. a group of top executives of the company get together, and we have a sort of management meeting in the form of brain storming on different subjects. At not very efficient level, as one of participants jokes, we sat, talked and left. Perhaps, it doesn't bring immediate result but almost all key questions are being discussed. Beyond this management meeting, I also always discuss questions with a large number of employees, and besides this I discuss my decision with colleagues and friends, who are competent in this question and can tell me something concerning the subject.
2. Is speed in decision-making important?
By the way, Kaha Bendukidze is a classical example: his principle is not to make any decision quickly. I worked with him and, sometimes, it was very annoying, however, in most cases it was right. It's a sort of block in decision-making. I don't think it is correct, but a lot of errors can be avoided if the decision is not made too fast. When someone tells me that there is a terrific investment but the decision has to be made today, for me it is a guarantee that I won't go after it. If the decision has to be made today, you can forget about it. If you have some time to think, if you can analyze it, then the proposal is interesting. Sometimes, fast decision-making also disturbs.
3. Can you give an example?
Not so long ago, there was such a situation: I wanted to buy a big and beautiful yacht. People who were selling it told me why it is such a perfect deal. They told me that if I'll buy it through leasing and will charter it, I'll be able to cover all the leasing payments with charter fee, which means that this yacht would turn to be practically free for me. I still will be able to use it for one month and a half per year. In eight years all the leasing dues would be fully paid, and one month and a half per year is more than enough to use it myself and to invite all my friends. I have discussed this offer with a quite big number of people. I have a friend in the yacht club "Burevestnik'", Andrey Boyko, whom I also called. He told me: "That's why I love you: you are such a successful business man, you lived till this age, and still believe in fairy tales!" He explained everything to me about this yacht offer, and what it is going to turn into. Obviously, I rejected that offer. At least, I'm trying to discuss the question with those people who might know something concerning the matter.
4. What other approaches do you use in the decision-making?
Simple situation - when the question concerns real estate. There are some people whom I consider to be experts. In many years I identified some people whom I trust and who never were mistaken. I involve them and propose them to manage the offered project if they find it interesting. If they accept it, it is an essential basis for me to make a decision. If we are talking about such a professional things as acquisition of companies or investment in a project, then I am an educated economist, I graduated from the Department of Economic Cybernetics of the Moscow State University, I have a PhD on mathematical methods of the analysis of economy, and I count very well. Therefore, I always analyze before making the decision.
5. What do you think of criticism within the company?
In our country everybody always criticizes everything, so I think that a lot of critics can be found. I have a theory that all people if they are less than fifty years old can find a job for themselves where they will earn more money. In a long perspective you'll lose, but at every certain moment it is possible to find something better. Fortunately, most of people in our company work here for many years and do not search for something better, at least those people who work with me. Apparently, it is interesting for them; their motivation is reasonable and they share my principles. However, I have no doubt that they continue to criticize everything since it's allowed in our company. I hear enough criticism at our Saturday meetings. Furthermore, thanks to one of our managers, we are starting to discuss questions on which we don't have mutual agreement at our management meetings. Soon we may end up with voting. It also works, though not in many cases, and it shouldn't be be that many, because it can lead to a mess.
