Barents group LLC THE UKRAINE ENTERPRISE RESTRUCTURING PROJECT In September 1998, the Ukrainian Enterprise Restructuring Project was created by the United States Agency for International Development (USAID) to accelerate the process of restructuring privatized Ukrainian enterprises and to enhance their competitiveness while stimulating the economic growth and the private financial sector. For this engagement, the restructuring process is defined by USAID as a series of procedures carried out within an enterprise with the objective of developing a more customer-oriented, commercially viable, privately owned business. The project Goals are to promote and support enterprise restructuring through the dissemination of information and the development of training materials based on practical restructuring experience at Ukrainian enterprises. The Project Objective is to develop a class of Ukrainian consultants who can provide restructuring advice and assistance to Ukrainian enterprises. To meet the goals of this comprehensive restructuring program, ERP will take the following approach: Conduct hands-on restructuring activity at selected enterprises and develop consulting capacity at the investment intermediary level in order to change internal enterprise conditions over which management has some measure of control and improve overall corporate performance. Broadly disseminate information and knowledge about enterprise restructuring to the general public and develop training materials for managers and other professionals who are involved in enterprise restructuring. Support restructuring activity by advocating policy and legislative change which will positively affect external conditions over which enterprise managers have little or no control. The investment intermediaries and portfolio enterprises for participation in the Ukraine Enterprise Restructuring Project (ERP) selected through a tender process. In Autumn 1998, ten enterprises were selected for the first phase of restructuring activity. (See Current Projects). ERP staff conducted iAn intensive three-week training session on restructuring methodologies for intermediary staff and enterprise representatives in the first quarter of 1999 and began to advise and assist with actual restructuring activities in the spring. during November-Decemberearly Three consulting teams - each consisting of a foreign restructuring expert, an experienced local consultant and a newly-recently trained investment intermediary staff members will set a work agenda, collected data to perform an operational analysis and developed an implementation plan. This first stage of the Project will last until January 2000. Some of the results of project activity are included in the Letter of Invitation. (see Tender: Letter of Invitation). The second phase of the project will begin in January 2000. ERP staff will select eleven enterprises for restructuring through another Tender process. The second stage of the restructuring program will consist of three components: initial training in Kiev (and possibly Donetsk) of a small number of investment intermediary and enterprise staff, subsequent training of key managers at each enterprise, and concurrent hands-on implementation of comprehensive operational and financial restructuring programs at each enterprise. (see Rules of Tender). Restructuring experience gained at select enterprises during the first phase of the Project will be incorporated into training modules that will consists of technical notes, practical recommendations for resolving problems faced by Ukrainian enterprises, examples of how these recommendations have been successfully implemented in Ukraine and Ukraine-specific case studies. Simultaneously, ERP staff will work with local organizations to increase their capacity to provide training and consulting services in restructuring topics to managers and other professionals working at Ukrainian enterprises. (see Partner Organizations). Practical experience and knowledge will also be disseminated to the Ukrainian public through written articles and video programs devoted to issues of enterprise restructuring. The Project team will also make use of other media such as radio, Internet website and CDs. ERP staff will alsoJanuary work with a number of local consultants and of government officials and NGO representatives to create a more favorable business environment in Ukraine and, select those more specifically, to draft legislation that can be proposed for Verkhovna Rada approval. The objective is to build support for restructuring through attitudinal change and through specificconcrete suggestions in the areas of corporate law and regulation and conditions of enterprise activity. The Project Team. USAID awarded the contract for the administration and implementation of this program to Barents Group, LLC. Together with its subcontractor, the Academy for Educational Development, Barents has assembled a team of Western and Ukrainian experts who have extensive restructuring experience in the former Soviet Union. For further information contact: Richard Longstaff, Chief of Party Telephone: (044) 225-6141 or (044) 228-0804 Fax: (044) 228-5642 E-mail: r_longs@gu.kiev.ua * * * CD-ROM Market Driven Change Ukrainian Business: Roads To Success The Ukraine Enterprise Restructuring Project (ERP) was created to accelerate the process of restructuring privatized Ukrainian enterprises. The overall intent of the project is to enhance the competitiveness of Ukrainian enterprises and stimulate general economic growth in Ukraine. The restructuring process is defined by USAID as a series of procedures carried out within an enterprise in order to develop a more customer-oriented, efficient and commercially viable business. CD-ROM Roads to Success has been developed from the real-life experiences of successful Ukrainian enterprises and is a unique opportunity for enterprise managers to acquire knowledge and ideas that worked for others and apply them at your enterprise. This self study multi-media interactive two-language CD-ROM is a collection of two years of restructuring experience gained by ERP experts specifically at Ukrainian enterprises. It provides possible solutions to the issues Ukrainian enterprise managers typically come across: ways to increase sales, generate cash or improve profitability. Through its interactive format, enterprise senior management can learn the ideas that have been successfully applied in today`s business environment in Ukraine. Below are answers some ERP enterprise directors gave to the question What has been achieved at your enterprise? Everything is changing. People`s approach is changing too. They have a different attitude to their job and to their enterprise. Sergey Karandin, Director General, Horlivka Meat Plant. Today it is not difficult to produce anything. The problem is to sell products. Olexandr Kovlyashenko, Director General, Druzhkovka Hardware Plant. The most important changes are taking place not in the offices but in the minds of top managers. Anatoliy Cherevatiy, Head of the Board, Sevastopol Shipyard. The CD-ROM`s brief tour will guide you through the Roads to Success, explaining its use and orienting you to the various topics and modules to be covered, including theoretical materials containing slides and narrative texts that explain business concepts in the areas of Strategy, Marketing, Finance and Business Operations. Within each of these four sections, you will find between 10-13 training modules, comprising over 1000 pages of information that would typically be found in a first semester MBA course. These modules are accompanied by 30 Ukrainian success stories, presented in audio and video format, that illustrate the process of change at specific Ukrainian enterprises by describing the situation at the enterprise before restructuring, actions undertaken and results achieved. The CD-ROM gives enterprise managers the opportunity to develop an enterprise work improvement plan by answering key questions listed within each module. Work Improvement Plan will enable enterprise top managers to set priorities and create action plans for the enterprise to achieve success. Also within the CD-ROM, you will find contact information for consulting and training companies that ERP experts have cooperated with throughout the Project. These companies can provide advice and training to enterprises, as needed, as well as details on international donor organizations working in Ukraine. The FREE version of the Roads To Success CD-ROM can be obtained in UAMC Choose your road to success and be successful!