Journal - Fit for Partnership with Germany
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Journal
Fit for Partnership with Germany ISSUE 10
ENGLISH
MANAGER TRAINING PROGRAMME OF THE GERMAN FEDERAL MINISTRY FOR ECONOMIC AFFAIRS AND ENERGY
In Focus:
Industrial Clusters
MP with India Continues Guests at the
German and Indian ministers extend Logistics Trade Fair
the Programme to 2020 Managers from Azerbaijan find
Page 6 out about the newest transport
and logistics concepts
Page 17
CONTENTS EDITORIAL
IN FOCUS: INDUSTRIAL CLUSTERS PAGE 27 ALUMNI 44-46 Dear Friends of the Manager Training Programme!
„Clusters are what drives innovation”,
said German Economy Minister
Brigitte Zypries marking the start of
the nationwide “Cluster Week Ger-
many” in April 2017. According to Ms
Zypries, clusters have become a major
factor for Germany’s competitiveness.
The cluster effect is not limited to in-
Social Business in Vietnam 44
novation, though. Clusters clearly have
Mongolian New Year C
elebrations more benefits. These are the questions
with the German Ambassador 46
in focus in the current issue of our
Kazakhstan: A Visit to the Laboratory 46 magazine: What are the character-
istics of a cluster? How do clusters
influence the economy? What does
SUCCESSFUL PARTICPANTS 47-55
cluster development mean for SMEs?
Design Thinking for Innovation 12 Iran: When Everyone Pulls Together 26 Egypt: Events for Egypt’s And of course, the issue at hand covers,
EDITORIAL 3
Printing Industry 47 among other things, clusters in the MP
NEWS 4-6 EU Association Agreements partner countries where cluster devel-
with Moldova and Ukraine 13 Ukraine: University Hospital
opment is also gaining importance. The advantages are obvious: clusters mean more
Defies the Crisis 48
Management Professionals contact with other businesses and potential cooperation partners. And this advantage is
Moldova: “Now I’m a Real valued very highly by the MP participants.
from Egypt at ABB 16
Entrepreneur” 49
Executives from Azerbaijan
Iran: MP is Gaining Pace 50 Since the beginning of this year, the Programme has been active in South America and
at the Logistic Trade Fair 17
Turkmenistan: Expanding Agriculture 52 Chile has become our 19th partner country. After Germany and Chile signed a joint
political declaration on cooperation, the first applicant selections took place. Today, we
PARTNER COUNTRIES 18-26 are looking forward to the first pilot group of Chilean executives coming to Germany
Partner Country – Tunisia in October!
A Partnership to be Proud Of 18
Angela Merkel and MP Alumni In Belarus, the follow-up conference was a perfect occasion to look back on the 2016
German-Tunisian Chamber of IN FOCUS 27-43
at Economic Forum in Tunisia 4
Industry and Commerce 20 training with a focus on renewable energy. The event showed the increasing importance
In Focus: Industrial Clusters 27
Chile Joins the MP 4 of renewable energy and energy efficiency not only for Germany, but also for the Eastern
Moscow: Lasting Impetus 22 Clusters as an Opportunity
Vietnam: Paying a Visit to the Imperial City 5 European countries which are partners of the Manager Training Programme. But at the
The Second German Trade and for Regions and Enterprises 28 same time, as the conference showed, there is still a long way to go for a turnaround in
MP with India Extended 6 Industry Day in Kyrgyzstan 23 Map: State of Cluster Development energy policy. Nevertheless, given the challenges in terms of creating favourable con-
Stable Sino-German Follow-up in Minsk 24 in MP Partner Countries 30 Russia: Looking Ahead 53 ditions in these countries, the first results are remarkable (read more on page 24).
Economic Relations 6
Catalysts of Regional Economic China: “Me, their Trusted Advisor” 54
Development 32 Along with our previous issues, this 10th issue of our journal illustrates the broad spec-
Kazakhstan: Oil Supply Secured 55
GERMANY 7-17 trum covered by the Manager Training Programme. I wish you an enjoyable read!
Iran: Cluster Development Model 35
AHP International: Global Expertise
Cooperation to Strengthen Warm wishes
under One Roof 7 SPECIALISED TOPICS 56-59
Innovation in SMEs 36
A Journey into the Unknown Negotiation Style:
The NEW-Blauhaus 38
or Goodbye to Clichés 8 Negotiate Successfully 56
Russia: Building Up the Infrastructure
Annual MP Conference 10 International Project Management 58
of Industrial Clusters 40
Twinning Partnership Minsk – Bonn 10 Reimut Düring
Uzbekistan: Pharmaceutics IMPRINT 15
Leadership the Georgian Way 11 Egypt: Skills that are Always in Demand 25 Is Gaining Ground 43 GIZ CONTACT INFORMATION 60
2 JOURNAL Issue 10 3
NEWS NEWS
Angela Merkel and MP Alumni The general tenor was positive. Represen-
tatives of local German enterprises report-
Paying a Visit to the Imperial City enabled high-quality groups to be estab-
lished with relative ease. Hoang Van Anh
at Economic Forum in Tunisia ed that while the bilateral trade volume
was growing slowly, cooperation between Hue, the former royal capital situated in Vietnam’s centre, is famous for
of the VCCI goes one step further and an-
ticipates even higher demand for places in
German and Tunisian enterprises was being the seat of the country’s last Emperor, boasting a vast citadel and the MP as a result of pending privatisation
quite good, thanks in no small part to well- reforms which are due to be implemented
a nearby wealth of palaces and monuments dedicated to ancient rulers.
qualified Tunisian specialists. They also ex- by the Vietnamese government. GIZ can
pressed a desire for more legal security and A stunning backdrop no less for the fifth meeting of the German- look back on extremely diverse collabora-
tax reliability. German Chancellor Angela Vietnamese steering committee, which convened on 31 March 2017 tive efforts, which above all were initiated
Merkel identified information and com- by way of an invitation issued by Vietnam’s Ministry for Planning and and pursued in Germany back in 2016.
munication technology as an area with Investment. These included, among other things, the
particular growth potential. She suggested importation of goods and technology from
Tunisian enterprises might benefit from Germany as well as the export of merchan-
exchanges with start-ups in Germany. The dise to German wholesalers.
Chancellor also indicated that contact
between Tunisian and German SMEs, Specific examples were provided first-
chambers and organisations could be in- hand to committee members when two of
tensified, a process that programmes like Vietnam’s 450 alumni were given the op-
German chancellor Angela Merkel and the Tunisian Prime Minister the MP were working to promote. Beck- portunity to present their results. Le Hong
Youssef Chahed (r.) during the round table discussion in Tunis meyer praised the Programme, calling it an Diep’s enterprise produces, among other
important tool in the BMWi’s “toolbox”, things, spices for export to Germany. Since
The ongoing refugee and migration crisis has brought North Africa into since it intensified bilateral cooperation his participation in 2016’s Manager Train-
the public spotlight. The region’s significance was further underlined between the two countries and promoted ing Programme, the firm has seen impres-
by German Chancellor Angela Merkel’s visit to Egypt and Tunisia at the economic cooperation among SMEs in sive increases in its sales numbers, due to
particular. To date 75 Tunisian managers the fact that his spices are now marketed in
beginning of March 2017. In the current climate, economic cooperation
have completed training, expanding their Germany using more targeted and effective
between Germany and the countries of North Africa is more important management skills, gaining insight into means. He also talks passionately about net-
than ever. German business practices, and establish- Hue. The city sights steeped in history also been explicitly flagged as a key topic at working among his group members: six en-
ing contact with German firms. Three MP were contrasted by the pressing issues of future scheduled bilateral meetings. trepreneurs have forged a relationship with
Tunis. A round table discussion held in the German Chancellor and many other alumni attended the conference to rep- the modern day, which were discussed by the aim of establishing a new enterprise
honour of the German Chancellor Angela government and private sector represent- resent the Tunisian private sector. Leith representatives of the Federal Ministry for Even Vietnam’s Co-Chairman, Le Viet producing formwork for concrete pouring.
Merkel’s visit to Tunis explored the central atives from both countries, such as the Tlemcani, who owns an enterprise that Economic Affairs and Energy, the German Anh of the MPI and Deputy Head of Di- Do Manh Hung, a “first round” alumnus,
issues around German-Tunisian relations. Tunisian Prime Minister Youssef Chahed, sells organic herbs (see Journal 7), Nizar embassy and the Delegation der Deutschen vision for International Relations, has ex- has demonstrated the longevity of his out-
These included current challenges for Tunisian Energy Minister Héla Cheikhou- Jallouli, whose printing enterprise focuses Wirtschaft, together with partners with- pressed his desire to see the Programme standing market knowledge and connec-
economic cooperation between Germany hou and Parliamentary State Secretary for on ecologically friendly printing, and Anis in Vietnam’s Ministry for Planning and remain in place going forward, given that tions with Germany. He imports German
and Tunisia, possible improvements, and the Federal Ministry for Economic Affairs Zelleg, who markets apricot stones (see Investment (MPI) and Vietnam’s Chamber it is deemed to be particularly effective beer products to Vietnam and then distrib-
which fruitful economic sectors to focus and Energy (BMWi) Uwe Beckmeyer, Journal 8). At the evening reception, the of Commerce and Industry (VCCI): Talks and efficient, and continues to display ever utes these via a sophisticated network to
on. Organised by AHK Tunisia and the who headed up the multi-sector German three alumni took advantage of an oppor- focused on the alignment of the Man- increasing stability over the course of time. supermarkets, as well as through his own
Tunisian Union of Industry, Trade, and delegation. Representatives of the Tunisi- tunity to talk to Parliamentary State Sec- ager Training Programme with Vietnam’s Karl Wendling, Germany’s Co-Chair- beerhouse and other marketing projects.
Handicrafts (UTICA), high-ranking at- an private sector also participated in the retary Beckmeyer. current economic development, a country man, has spoken of the special nature of
tendees of the Economic Forum included discussion, including some MP alumni. displaying significant growth but also nu- the role played by the MP in today’s “vol- For Wolfgang Hombrecher, the Federal
merous challenges. atile” times, during which certain countries Ministry’s country representative for the
endeavour with increasing fervour to limit MP in Vietnam, this fifth conference of the
Chile Joins the MP “Vietnam displays such promising econom-
ic development that it is soon to dispense
foreign trade. This means that Germany’s
focus is increasingly turning towards Asia
steering committee happens to be his last.
He received many heartfelt thanks for his
with the title of developing nation, and will – including Vietnam – in terms of foreign longstanding commitment to the Vietnam-
Santiago de Chile. A new subcontinent planning meetings, ultimately begin rubbing shoulders with trade. ese partners and participants.
has come on board, and the Manager the BMWi, MINE- other industrialised nations” stressed Dr
Training Programme will start in South CON and CORFO Wolfgang Manig, Deputy German Ambas- Both execu-
America in 2017. Chile is the 19th part- have signed a joint sador in Hanoi. “Another key indicator of tive organisa-
ner country to join the MP. At the start cooperation agree- such progress is that the Manager Training tions – GIZ
of the year, a fact-finding mission jointly ment. The selection Programme has developed from its infan- and VCCI
coordinated by the BMWi and GIZ process has already cy – offering technical support – into a – look back
yielded a very positive outcome. Great begun, and the pilot mature programme for genuine economic over the pre-
progress has been made since. The Chi- group is expected in collaboration”. The strategic partnership in vious two
lean Economic Development Agency Germany in Octo place between Germany and Vietnam since years posi-
(CORFO) will organise the programme ber 2017. Glad to 2011 is positively “thriving”; Prime Min- tively: The
at the Chilean end, and the Chilean Min- have you on board, ister Nguyen Xuan Phuc recently took part high number
From left to right: CORFO’s Vice President Eduardo Bitran, State Secretary at the
istry for the Economy (MINECON) Chile! BMWi Uwe Beckmeyer and the Chilean Minister of Economy Luis Felipe Céspedes
in the G20 summit in Hamburg. It is of of applicants The members of the Steering Committee are developing plans for the next two years
will act as political partner. After detailed considerable importance that the MP has in the past
4 JOURNAL Issue 10 5
NEWS GERMANY
MP with India Extended AHP International
Berlin. Sound and high-quality vocati-
onal education and training is becoming
Global Expertise
increasingly a “conditio sine qua non”
for well-functioning business structu- under One Roof
res. This is also the case in India. At the
press conference on the occasion of the
fourth Indo-German intergovernmental Heidelberg. AHP International is one worldwide, expanding and organ-
consultations on 29-30 May 2017 in Ber- of the training centres involved in im- ising regional export networks,
lin, German Chancellor Angela Merkel plementing the Manager Training Pro- for example, and selecting and
emphasised that the topic of vocational gramme throughout Germany. On behalf mentoring training programme
education and training has again been a of the Federal Ministry for Economic participants.
focal point in recent years. She said that Affairs and Energy (BMWi), AHP’s glob-
Germany with its experience in this field Brigitte Zypries and Nirmala Sitharaman reaffirm their commitment to collaboration al experts have worked with international The right balance between
can do a lot, adding: “However – and this executives from Egypt, Azerbaijan, China, training in basic management
is very important – we must consider this plemented by the direct application of presence of Chancellor Merkel and the India, Mexico, Moldova and Ukraine skills and opportunities to es-
in conjunction with the Manager Trai- what has been learnt during targeted com- Indian Prime Minister, Narendra Modi, since 2014. The Heidelberg training cen- tablish new business contacts is
ning Programme, which has today been
extended again. Through further educa-
pany visits and in first steps to establishing
long-term business relations. To ensure
for the continuation of the Indo-German
Manager Training Programme until 2020.
tre also designed and organised a pilot
programme for Mexican executives, the
the secret to the MP’s success. As
a training centre, AHP helps partic- • Heidelberg
tion and training, managers from India this, the Federal Minister for Economic The MP with India has been running very first MP to focus exclusively on the auto- ipants prepare for and complete the
gain insights into our enterprises’ activi- Affairs and Energy, Brigitte Zypries, and successfully since 2008, and about 550 motive sector. MP. The heart of the Programme centres INTERNATIONAL
ties”. Nevertheless, the imparting of skills Nirmala Sitharaman, India’s Minister of participants have completed their training on identifying and meeting with possible
is only one part of the BMWi Manager State for Commerce and Industry, signed since then, as Modi also emphasised. With its worldwide network of partners new business partners, and AHP offers
Training Programme. The training is com- a Memorandum of Understanding in the and experienced project managers, AHP targeted and practical support through-
International is the first port of call in Ger- out this process. When necessary, AHP
many for enterprises looking to interna- continues to support the alumni after the
tionalise their businesses. The full-service MP, facilitating new business relationships
Stable Sino-German Economic Relations provider is particularly adept at devising
individual market entry plans based on ac-
and expanding networks with tailored
searches for business partners. AHP also
exhibitions and connect with German as-
sociations, clusters and other multipliers.
larly in the economic sector. And the MP is tive, international marketing. AHP also as- assists alumni in re-establishing or inten- AHP International also takes advantage
making a special contribution to strength- sists enterprises with purchasing processes sifying contacts established in individual of the synergies between the MP and
ening bilateral business relations between and setting up new branch offices abroad. meetings and company visits organised the BMWi’s Market Development Pro-
SMEs. Within the framework of the Pro- by the training centre. AHP follows up gramme, bringing alumni together with
gramme, Chinese and German executives In addition to tailored corporate consult- when contact tapers off, and with Ger- German delegates of fact-finding missions
gain intercultural and technical skills and ing, AHP International numbers among man entrepreneurs who have expressed for market and business development in
begin important business partnerships. the leading service providers for business interest in working with MP alumni, but one of the MP partner countries.
development in foreign trade and interna- were unable to schedule a meeting during
The results achieved so far by participants tionalisation. AHP International works at the programme in Germany. AHP also AHP International’s global network
such as Luo Tian, Tang Xiangxian or home in Germany and in key target markets helps alumni prepare for and participate at provides alumni with access to global
Ralf Hägele confirm the effectiveness of markets, targeted partner searches, inter-
the MP. These three alumni attended the national multipliers and individual target
meeting and described their training in market analysis of promising markets. The
Germany and China. “In Germany, I found alumni work goes well beyond the scope
the add-on to our product. Now we are on of follow-up seminars and the training
the way to actual cooperation”, says Tang centre continues to offer MP alumni a
Xiangxian, Deputy Managing Director comprehensive spectrum of services after
Building good relationships: the participants of the Sino-German Steering Committee of Hefei Changyuan Hydraulic Co., Ltd. the programme. AHP focuses on alumni’s
in the east of China. These synergies also needs, whether they are facing the chal-
Cologne. “China is Germany’s most im- torical Wolkenburg in Cologne on 23 May hold great potential for the further devel- lenge of developing an effective strategy
portant partner outside the EU, and the 2017. “The Programme also makes it clear opment and sustainable stabilisation of for the German market or looking to enter
Manager Training Programme (MP) is an that the exchange between Germany and both programmes. Over the past ten years, other potential international markets.
essential part of Sino-German relations”, China is becoming deeper”, added Tian 404 Chinese executives have completed
emphasised Karl Wendling, Director at Chuan, Co-Chairman and Deputy Direc- their manager training in Germany and 78 For more information please visit:
the German Federal Ministry for Eco- tor of the SME Bureau of the Ministry of German managers have participated in the www.ahp-international.de
nomic Affairs and Energy (BMWi), Industry and Information Technology of “Fit for Business with China” module. The
when he opened the eighth meeting of the People’s Republic of China. Both sides next meeting of the Sino-German Steering
the Sino-German Steering Committee on confirmed that Sino-German relations are Committee will take place in China in
Representatives of AHP International
the Manager Training Programme in his- developing positively and steadily, particu- 2018.
6 JOURNAL Issue 10 7
GERMANY GERMANY
A Journey into the Unknown The firm’s management had asked the
person responsible for cooperation with
Kazakhstan to present the corporate pol-
process. The guests were particularly im-
pressed by the fact that if a worker has to
leave his workplace for a short time, the
Ravil Valeyev is Com-
mercial Director of Kazyna
Gold in Astana. He was
him methods of quality monitoring as well as
production optimisation with the aid of 3D
technologies and explained customer services
or Goodbye to Clichés icy specially for the participants’ visit. He
gave a detailed description of how the en-
terprise has struggled against counterfeit
quality manager takes his place for that
period. Continuous work processes have
the highest priority.
interested in 3D techno-
logies and their possible
uses in the jewellery in-
and customer relationship management to
him. Just a week later, he signed a purchase
contract with EOS GmbH for the supply of the
cables, illustrating how faked products dustry. Kazyna Gold has been producing and first 3D printer and he signed a letter of intent
of inferior quality can damage an enter- During the visit to the new headquarters selling jewellery for 20 years. The firm had with Concept Laser. Valeyev had already con-
prise’s reputation and the entire market. of Hahn+Kolb Werkzeuge GmbH in decided to introduce new techniques from 3D tacted the firms prior to the training program-
Executives from Kazakhstan visited Export-Akademie Baden-Württemberg Ludwigsburg, one of the most innovative jewellery design in order to expand its range. me; numerous letters had been sent back and
from 24 April to 18 May 2017 for training. Some of the participants had The managers from Kazakhstan also companies worldwide for metal-cutting The enterprise can position itself differently forth and many questions discussed. Again it
already gained experience with international partners, but for the majority learnt about the latest solutions the Lapp tools and machinery in the metalwork- with this completely new branch of industry was clear that Germans are very conscienti-
Group has for Industry 4.0. The com- ing industry, not only the company’s and even enter the field of dental technolo- ous when it comes to contracts, weighing up
of them this was their first visit to unfamiliar Germany. It was therefore plete integration of corporate processes clever marketing strategy but also its use gy with the aid of 3D printers. Valeyev visited the risks and checking the alternatives. Ho-
not surprising that they asked numerous questions: “Will everything run requires new solutions and much quicker of alternative forms of energy in con- Electro Optical Systems (EOS) GmbH in Mu- wever, once they have decided in favour of a
smoothly?”, “Will I find suitable cooperation partners?”, “Are German data transmission. The firm has devel- struction impressed the participants. nich and Concept Laser GmbH in Lichtenfels cooperation, they generally maintain long and
enterprises willing to speak with us, and are we ready for negotiations?” oped module solutions and hybrid con- The new corporate headquarters were and presented his ideas there. They showed sound partnerships.
and “Are Germans really so cool and rational?”. nectors which are already being used in built in just 13 months and are reminis-
SmartFactory projects. Naturally, the cent of a large glass ship. The roof slopes
guests were particularly pleased to hear at a 45-degree angle and is covered with customers can choose between different people. “We arrived in Germany with
Tubingen. The participants discovered years. The “secret” of the firm’s success is that the Lapp Group’s diverse products photovoltaic panels. The large windows brands and save time by only buying from questions upon questions, and we soaked
from the first day on that many of the particularly impressive: keeping family are being used at the German pavilion at in the façade and the atrium in the cen- one firm. The MP participants also found up all the impressions and experiences
clichés about Germans are not true at traditions alive and, at the same time, Expo 2017 in Astana. tre of the building enable the optimum the online configurator for workshop like sponges. Now we know exactly what
all. Yes, they are punctual, very organised having strong innovation capabilities. utilisation of sunlight during working and workstation planning extremely we have to do or alter in order to manage
and have a strong sense of responsibility During the visit to Mercedes Benz in Ras- hours. Geothermal energy is used for interesting. Within seconds, instrument our business well”, said Ajshan Nuralina,
but, at the same time, they are also oblig- The Kazakh MP participants’ enterprises tatt, the MP participants were able to see heating and ventilation and a green area cabinets can be placed in the functionally Deputy Director at Naira Group, ex-
ing, democratic and upright. Clichés are are comparatively young; many of them a perfectly organised production chain: with a small pond offers employees a and ergonomically best position. Madina pressing exactly what the other managers
generalisations, and the more general a were only established five to ten years sophisticated production processes that place to relax during breaks. The design Kushagaleyeva immediately made a note felt. “And now we describe German en-
statement is, the sooner it can be wrong. ago. The success of the family business save time and resources. The production of the building at Hahn+Kolb inspired of the program’s basic parameters and terprises as being open minded, efficient,
But the most famous clichés about Ger- Lapp showed the executives that the is partly carried out with the aid of ro- the guests to utilise geothermal energy started making plans to use it in her fur- productive and innovative”.
mans are that they have a strong spirit family philosophy – namely continuity bots and partly by workers. The assembly, in Kazakhstan too. The company’s sales niture business.
of innovation, are excellent partners and and stability coupled with innovative from the bodywork to rear view mirrors, policy also aroused a great deal of inter- Violetta Sticker is a project manager at
that one can learn a lot from them. This products and consistent brand policy takes place on the assembly line, i.e. the est. Like all ingenious ideas, the approach The training in Germany was of great the Export Academy in Tübingen. She
is exactly why the managers had come to – is the right way to safeguard crucial cars are continuously moved along by a is very simple: in addition to selling its value to the participants. It changed their develops and implements training pro-
grammes for participants from Eastern
Germany. competitive advantages over generations. conveyor-line throughout the assembly own products and system solutions, the attitude towards business life and provid- Europe as well as leadership training
company acts as a commercial agent for ed an opportunity for getting to know in CIS countries. Her main focus lies in
project and time management.
After the first training session, which other manufacturers’ products. Hence, outstanding enterprises and remarkable
dealt with the topics of intercultural Kayrat Shagirov is Ma- management and on conducting negotiations,
management, presentation techniques naging Director of the Bo- he did not feel unsure at the first meeting with
and conducting negotiations, the execu- lashak group of enterprises the German partners. “I find the absolute open-
tives visited German firms. And here the in Astana. His goal was to ness during all talks, even concerning prices,
well-known saying in Germany “seeing learn more about new de- particularly worthy of mention. The clear struc-
something once is better than hearing velopments in alternative ture of the negotiations and the willingness to
about it a hundred times” proved to be forms of energy and their use in agriculture. cooperate impressed me”. He concluded an
true. The company visits showed how “I prepared myself well in advance for the trai- agreement with the partners during his first
important training and also the choice of ning and am very well informed on the topic visit regarding the supply of wind generators
the right suppliers, the structure of busi- of modern technologies in this field because to Kazakhstan and received a positive answer
ness procedures, branding and succession I believe that the future belongs to alternative concerning consultancy services. And during his
planning in the business are to German energy carriers”, Shagirov says. “On the one visit to Hahn+Kolb GmbH, Shagirov discovered
enterprises. hand, energy can be generated from renewable an alternative energy source completely new to
or almost inexhaustible natural resources and, him: geothermics. On the second to last day of
One of the first stops was at Lapp Kabel on the other hand, it is environmentally friendly his stay, he was even able to speak with experts
GmbH in Stuttgart – which became the and economical”. There are large agricultural in this sector at GeoThermal Engineering GmbH
blueprint for all of the other appoint- areas in Kazakhstan, particularly in the sparsely in Karlsruhe. He described this new segment to
ments. The firm’s corporate history is a populated regions, on which small wind gene- his partners upon his return home. “During the
perfect example of a medium-sized Ger- rators can be used. That is why Shagirov visited training, I had the unique opportunity to see a
man enterprise’s internationally success- the German firms LuvSide GmbH in Grünwald country and what makes it distinctive at first
ful practice. The small but innovative and Superwind GmbH in Brühl in the Rhineland hand, over a longer period of time. That is in-
Practical relevance is crucial: MP participants
business has managed to become a global region. Thanks to the training on intercultural valuable”, says Shagirov. from Kasakhstan visiting German companies
leader in cable technology in less than 50
8 JOURNAL Issue 10 9
GERMANY GERMANY
Annual MP ponents, methods or
group formats. Al-
A lively discussion with represen-
tatives of the training institutions, Leadership the time and make the effort to personally
interact with and get to know employees.
Conference ways with two core BMWi and GIZ Clear communication of expectations,
concerns in mind:
how to make the MP
run more smoothly
the Georgian Way roles and objectives is also key, as is outlin-
ing a clear project structure. Participants
explored and discussed the proposed
and how to keep the model and discovered that the phases
Bonn. Despite the cold and rainy German Programme relevant, An enterprise’s workforce is its most valuable asset, and effective and of team development were not “rocket
winter outside, the mood at the annual considering current efficient leadership of this workforce is key to ensuring a firm’s continuing science”. The workshop also focused on
meeting between the BMWi, GIZ and trends and devel- success. Good leadership does not take place in a vacuum though, and is boosting team performance and produc-
the thirteen German training centres was opments. Just like influenced by and seen through the lens of culture. Cultural values shape tivity. Participants began by evaluating the
cheerful, as they embarked on a 2-day mis- the business world status quo in their enterprise, then shared
an executive’s attitude and behaviour, and strongly affect how staff percei-
sion to discuss the MP. Its current success they operate in, the suggestions and generated ideas for ways
was reflected in BMWi Head of Division participants and
ve and evaluate a manager’s leadership style and skills. Georgia and Ger- to positively influence team performance.
Yildiz Götze’s opening statement, who their needs change. Issues such as digitali- Markets” offered training centres the pos- many are culturally different, so logically effective leadership styles differ The resulting suggestions and solutions
pointed to the rapidly growing number sation and automatisation, while affecting sibility to present best practices and learn between the two countries as well. Georgian MP participants had a chance clearly illustrated the instruments of team
of partner countries and the high es- each partner country in a unique way and at from each other. From new digital com- to contrast and compare some cultural ideals of effective leadership in a leadership and the value of peer consult-
teem in which the Programme is held by a different pace, are a current or future con- munications platforms that facilitate the workshop held at the Carl Duisberg Centers. ing for the group.
the BMWi and its partners alike. But, as cern for many participants. preparation of the candidates in their
the participants are taught during their home country, to acquisition methods for Cologne. Leadership involves motivating favours a participative approach, where
training: in international business, change The comprehensive insight into the needs the company visits. and coordinating a workforce, communi- employees are allowed and even encour-
is inevitable. Those who dwell on their of the participants is an invaluable re- cating a shared vision, and employing au- aged to bring up their own ideas and are
success for too long will be swept aside by source in terms of evaluating current con- Two days of intense and lively exchange thority and encouragement to realise that actively involved in decision-making
new trends and developments. tent and methods as well as suggesting provided everyone with new perspectives vision. Ideally effective leadership con- processes. Some Georgian enterprises
new additions. Several open formats on the MP and plenty of innovative ideas. siders and promotes the interests of the en- tend to focus more on hierarchy. When
That is why this year’s meeting was all about facilitated the participation of training While not all of them can be implement- terprise and workforce alike. A leadership asked what characterised “poor” leader-
developing new ideas and visions for the centres and GIZ-staff in discussions on is- ed, it’s the spirit of innovation and the workshop for Georgian MP participants ship in their country, MP participants
future. Be it on a small scale, by improving sues ranging from the selection criteria for openness to change demonstrated in these illustrated how our fundamental under- cited “micromanagement” as a widespread
existing components of the Programme. the ideal participant to the components of two days that will be essential to ensuring standing of leadership is solidly founded management style. Here executives make
Or on a larger scale by imagining new com- the evaluation system. Additionally, “Idea the MP’s future success. in cultural values and identity, and high- decisions unilaterally without involving
lighted another important aspect: trust. their teams. A “good” leader, they felt,
Trust is essential to ensuring employees was someone who was “not a nationalist”.
are willing to follow an executive’s lead, In culturally diverse Georgia, respect for
Twinning Partnership Minsk – Bonn and it arises when staff recognise an execu-
tive’s leadership skills and upright, honest
other cultures and nationalities is appar-
ently viewed as an important prerequisite
Team building and leadership
on a small scale
behaviour. for successful leadership.
nomic and university lo- the number of participants, which shows
cation. However, general that German businesses are very interested Geert Hofstede identified “power dis- Georgian participants were particularly The workshop’s objective was to help
economic policy was not in the Belarusian market. Roughly 45 par- tance” as one dimension of national cul- interested in instruments for effective participants clearly visualise their own
the only topic. Actual ticipants were present at the event, among ture and described its effect on leadership team leadership. The group explored prac- leadership styles and identify differences
business initiation was them Commerzbank, Zenit GmbH and styles. Power distance deals with the dis- tical ways of getting a team up and running between the leadership styles typical for
the objective of a further Anton Ohlert GmbH & Co. Two B2B tribution of power in a particular culture, quickly based on the team development Georgia and Germany. This provided par-
activity resulting from the sessions with German and Belarusian par- which influences how power is distributed phases suggested by Bruce W. Tuckman. ticipants with the skills to reflect on and
existing partnership – the ticipants were special highlights of the inside an organisation and the degree of Here, trust is an essential element and lays understand their experience in Germany
MP participants from Belarus in Bonn
Entrepreneurs’ Day. The event. Altogether, 50 meetings were ar- inequality the parties involved are will- the groundwork for successful coopera- better. All Georgian executives agreed
event, which was organ- ranged, and 78 per cent of the Belarusian ing to accept. German corporate culture tion. It is important that executives take on a central take-away: Germans tend to
Bonn. A twinning partnership between ised by the Bonn/Rhine-Sieg Chamber participants expressed their satisfaction take a very structured and systematic ap-
Minsk and Bonn has already existed for of Commerce and Industry, took place with the content of talks. The executives’ proach to management. Structural aids
more than twenty years. Bonn’s Deputy on 19 April 2017 and provided infor- stay in Bonn and the activities within the Enterprise’s cultural Workforce’s assessment and selected instruments can raise aware-
conditioning of leadership behavior
Mayor, Reinhard Limbach, took this as mation on the most important aspects of scope of the Programme contributed to ness of otherwise intuitive behaviour, lead
an opportunity to welcome to the Federal establishing a business. A representative further strengthening economic contacts to better decisions, and, if necessary, help
City of Bonn 18 executives from Belarus of Euler Hermes gave a lecture on export between Belarus and Germany. Leadership behaviour & modify leadership style.
receiving manager training at CEFE Inter- credit guarantees for transactions con- role perception
national and Conoscope. The managers’ cerning the delivery of goods to Belarus, Marlinde Bärenz is an economist and
director of The Competency Based
stay in Germany within the framework of and the Minsk Club Bonn presented cul- Economies through Formation of En- Frank Gieth has worked as a freelance
the MP started with an official reception at tural specificities to be considered when trepreneurs (CEFE) International Training Country’s cultural norms, values, management skills developer and
Centre in Cologne. She conducts a va- and basic assumptions business coach since 2012. He advises
Bonn’s Old Town Hall on 12 April 2017. establishing business relations between riety of cooperation programmes for the clients and trains international groups on
Here the participants had the opportunity German and Belarusian enterprises. The German economy with other countries leadership and personnel development
and takes care of participants in the BMWi Manager Training – including MP participants on behalf
to ask the deputy mayor about the infra- Belarusian Ambassador Denis Sidorenko Programme in collaboration with Consortium Conoscope GmbH Leadership behaviour at the interplay of culture, company and workforce (Frank Gieth 2017) of the Carl Duisberg Centers. To contact
structure in Bonn and the city as an eco- also attended the event and was pleased by in Leipzig. Frank please visit his website at www.frank-gieth.com.
10 JOURNAL Issue 10 11
GERMANY GERMANY
EU Association Agreements with Moldova and Ukraine
Opportunities and Challenges
In today’s globalised world, lasting cooperation in business, politics and Structure of the Association Agreement
legislation is an important prerequisite for the successful development of a
state or a union of states. This awareness initially motivated the European The Association Agreements with Mol-
dova and Ukraine are comprehensive
Community and later the European Union to drive cooperation with its
and complex, both in their structure
neighbours forward – also with the Eastern European partners in Moldova and with regard to content. According
Varying opinions and experience within and Ukraine. to statements by the Ukrainian Cabinet
a group help generate new ideas of Ministers, the text of the Agreement
Adding substance to the cooperation: were to be concluded at the end of the is the most comprehensive international
Design Thinking for Based on the assumption that only inter-
disciplinary teams can generate innova-
tion, design thinking brings the widest
This recognition guided the negotiations
on new agreements intended to provide
a new legal basis for the relations be-
negotiations. The Association Agree-
ment with Moldova came into force on
1 July 2016; the ratification of the Agree-
treaty that Ukraine has ever concluded
and, at the same time, also the largest
international treaty that the EU has ever
Innovation possible range of experience, opinion and
perspective on a specific problem or issue
together. The Indian MP participants all
tween the EU and its Eastern European
neighbours. The acknowledgement that
the legal basis of the cooperation needed
ment with Ukraine has not yet been
finalised. However, Ukraine has already
been included on a temporary basis in
signed with a country outside the EU.
The so-called “economic block” in the
represented very different firms, roles, and to be adapted to changed circumstances the Deep and Comprehensive Free Trade Agreements plays an important role with
In spring 2017, MP participants from India explored design thinking as a age groups, creating the ideal diverse group led to the development of the European Area since 1 January 2016. The Associ- regard to the opportunities and risks re-
creative way to respond to the challenges posed by the fast pace of today’s for applying the design thinking method. Neighbourhood Policy and, within its ation Agreement can only finally enter sulting from the Agreement for Ukraini-
business world. As a management tool, the design thinking methodology The group began by quickly identifying a framework, to the Eastern Partnership. into force once all of the instruments of an and Moldovan enterprises. In the
skills shortage as a serious problem that A dialogue took place between the EU, ratification have been signed and sent to Association Agreement with Moldova,
takes a systematic approach to complex problems while focusing on the
affected all their medium-sized Indian Moldova and Ukraine on the possibilities the Secretary General of the EU Council matters regarding economic integration
user’s needs and desires. enterprises. and the expediency of increasing integra- for safekeeping. The Association then are set out primarily in Title IV, which
tion efforts in the areas of policy, trade, comes into force on the first day of the concerns economic and sector cooper-
Munich. When asked what made for a participants to experience this concept in Design thinking is a human-centric ap- culture and security within the context of second month following the submission ation. Title V deals with the most im-
great football player, Franz Beckenbauer action. They were asked to build the tallest proach centred on people and their needs the Eastern Partnership. The Association of these instruments. portant standards for free trade between
once famously responded, “You cannot possible tower from uncooked spaghetti – in this case, on people looking for a job. Agreements with Moldova and Ukraine the EU and Moldova. In the Agreement
run after every ball. You have to sense and top it with a marshmallow. Inter- Participants were tasked with imagining with Ukraine, legal matters regarding
where the ball is going to go, then be there estingly, preschool-aged children excel the ideal skilled worker for their particular economic integration are dealt with in
ahead of it”. This same principle can also at this challenge because they approach enterprise. They named their imaginary Title IV; the legal status of the free trade
be applied to creating an environment in it playfully, experimenting with different candidate Ishwar, a 35-year-old man, mar- area is also regulated there. The economic
which innovation can flourish. approaches, and immediately moving on ried with two children whose motto was and sector cooperation between the EU
to try something else when one approach “I need space”. Using Ishwar as a jumping- and Ukraine is dealt with in Title V. The
In our fast-moving world, we cannot as- fails. The exercise illustrates that initial off point, the group explored and devel- stipulations in Titles IV and V of both
sume that our enterprises are in the posi- failure is not detrimental to a process. oped approaches, such as targeted con- Agreements are defined more precisely
tion to expertly carry out all processes, at Quite the opposite in fact, as it can actu- tent marketing, that could solve the skills or modified in the Annexes to the Agree-
any time. Even if we plan carefully down ally promote the rapid optimisation of a shortage. Here the focus was not on draft- ment, for example, regarding provisions
to the smallest detail and do our best firm’s innovation strategy. ing a detailed plan, but rather on exper- on the reduction or elimination of tariffs,
to anticipate every possible eventuality, imentation and amassing new ideas and limitations on enterprises’ areas of op-
things often turn out quite differently to Design thinking is a flexible approach, one solutions. This experimental approach, an eration, the production bans on products
how we expect. We live in a VUCA world possible way of responding to the VUCA alternative strategy for reacting quickly bearing protected names, etc.
– a world shaped by volatility, uncertainty, world and of achieving fast results. Orig- to change to promote innovation, helped
complexity and ambiguity. inally developed at Stanford University, participants experience design thinking in Free Trade Area
the design thinking methodology is a a very real way. It illustrated the approach’s
VUCA has significant implications for problem-solving protocol to promote in- usefulness as a way to meet the challenges Both countries have reached an agree-
innovative capacity. In his 2014 article novative products and services. It aims to they face. ment with the EU to join the Deep
“What VUCA Really Means for You”, identify customer-centric solutions from and Comprehensive Free Trade Area
North American economist Nathan Ben- a user’s perspective. Design thinking is Peter Steinhoff is Managing Director of (DCFTA) in order to strengthen trade
nett suggested that rather than trying based on the basic premise that innovation IndiGate GmbH, a consultancy company relations. The purpose of the DCFTA is
that works with German, Austrian and
to force set plans through at any cost, a arises at the intersection of three factors: Swiss firms with operations in India. He the liberalisation of trade and the mod-
flexible, open response strategy was the human beings, technology, and business. is also the Programme Director for Inter- ernisation of both countries’ economic
national Management at the University of
key to corporate success. The “marsh- It can occur if desirability, feasibility and Applied Management Erding, and runs potential through the improvement of
mallow challenge” was a chance for MP viability are given. MP seminars. MP participants from East Europe at the training in Kiel the quality of goods and services and the
12 JOURNAL Issue 10 13
GERMANY GERMANY
expansion of exports to the EU and other For instance, one of the key issues stated plays an important role. The use of min- in place. For both countries, they apply
IMPRINT
countries. in the Agreement with Moldova is the eral resources, agriculture and rural de- particularly to agricultural products, for
reform of the public administration. The velopment, transport, the environment, example wine, honey, vegetables, fruit, Journal
‘Fit for Partnership with Germany’
The reduction or elimination of import Agreement with Ukraine does not con- tourism and energy are also worth partic- poultry and pork as well as milk products Manager Training Programme of the
duties is stipulated in both Agreements. tain such a passage. Both countries have ular mention. The Agreement with Uk- and grain. The EU offers its Moldovan German Federal Ministry for Economic Affairs
Trade barriers are to be reduced by uni- defined cooperation raine contains and Ukrainian partners tariff quotas, and Energy (BMWi)
fying technical, sanitary and other with the EU regard- detailed state- within which exported goods are duty Issue 10
standards. The parties to the Agreement ing company law, ac- First and foremost, ments regarding free. These quotas are granted according Publisher:
undertake to improve the working con- counting, auditing Moldovan and Ukrainian nuclear ener- MP participants to the “first come, first served” principle Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH
ditions and the access to the respective and especially also gy, space, the discuss their chances and are continuously updated. The alloca-
enterprises must change of joint projects with
Manager Training Programme of the BMWi
other goods market for their enterprises. consumer protec- audio -visual tion procedure for tariff quotas is precisely Reimut Düring, Head of the Manager Training
In addition, it was agreed to liberalise the tion as priorities.
their ways of thinking and sector, fisheries,
the EU
defined. Importers must first apply to the Programme of the BMWi
capital market, intensify cooperation in Furthermore, spe- their corporate philoso- maritime policy competent Directorate-General of the EU Email: mp-pr@giz.de
Internet: www.managerprogramme.com
the area of intellectual property and har- cial chapters in both phy if they want to be and the use of made up slightly more than 20 per cent. Commission; when doing so, they should
Responsible party:
monise competition legislation. Chapter Agreements set out successful in the single the Danube The situation in Ukraine is a bit different. know the extent to which the quota has Christina Otto
15 of the Agreement with Moldova also arrangements on co- market of 28 countries. river basin. Here too the EU is one of the most im- already been utilised. Information on
Editorial team:
contains arrangements for the approx- operation regarding There are com- portant markets; in 2016, 37.1 per cent the current utilisation of a quota can be Natalia Astrin (responsible party), Anke Flören,
imation of Moldovan trade legislation the online provision prehensive of Ukrainian exports were to the Euro- obtained from the EU Commission’s Jan Löcher, Dr Gerd Schimansky-Geier
to that of the European Union. Chapter of public services and a rr a ng em ents pean Union. website at http://ec.europa.eu. A number Layout:
15 of the Agreement with Ukraine lays access thereto as well as cooperation in on climate protection in the Agreement of conditions must be fulfilled before Diamond media GmbH, Miria de Vogt
down the mediation mechanism for the social sphere and in the development with Moldova. In both Agreements, a It is advisable that enterprises in both preferential tariff quotas can be utilised in Contributors:
finding mutually agreed solutions if trade of civil society. great deal of attention is paid to transna- countries seeking access to the EU trade with the EU; for example, a so-called Verena Freynik, Karina Gabrielyan, Ani Helweg,
Yelena Kuleshova, Ingrid Loewenstein,
is adversely affected through measures tional cooperation in the development of market first take a close look at the size EUR.1 Movement Certificate is required. Jörg Schreiber, Julian Teetzen, Karin Weber
that fall under Title IV, Chapter I (Na- Title IV of the Agreement with Mol- the regions, including opportunities for of this market. More than 510 million Details on these requirements can be Photo credits:
tional Treatment and Market Access for dova and Title V of the Agreement enterprises and individual entrepreneurs people live in the 28 Member States. If found at the EU’s Export Helpdesk online Fatima Abdueva (p.48t.); AHK Tunesien (p.20,21);
Goods). with Ukraine contain comprehensive to participate in EU committees and EU the quality of the goods and services they portal http://exporthelp.europa.eu. The AHP (p.7,16); Sadok Bejja (p.18t); Dorin Bolohan
(p.49); © Bundesregierung / Guido Bergmann (p.4t);
arrangements for increasing economic programmes. offer is right, the enterprises can access Helpdesk provides valuable information
CDC (p.11); CEFE International (p.10b.); EABW
Economic and Sector Cooperation cooperation with the EU. Both coun- the largest market in the world. This mar- on sanitary and phytosanitary require- (p.9b,24); Dariush Eftikhar (p.43t.); © Fraunhofer-
tries strive to build a functioning market The EU as a Trading Partner ket offers not only clear and transparent ments, export restrictions, quotas, tariffs IOF (p.28); GIZ/Angela Leeke (p.23b.); GIZ/Jan
General questions regarding the eco- economy modelled on the EU. They plan rules for commercial transactions but and other EU requirements that exporters Löcher (p. 3,10t.); GIZ/Ingrid Loewenstein (p.6b.);
GIZ/Tatyana Pivovarova (p.22); © GTAI (p.34b.);
nomic cooperation and special arrange- to restructure their tax systems, partic- Trade relations between the EU and the also effective legal protection for mar- in Moldova and Ukraine must observe. Sun Hailong (p.54); IHK München (p.12,17,25, small
ments on relations in individual sectors ularly the procedures for collecting and two Association partners began in the ket players. Businesses active in the EU cover photo r.); iStock (p.35b.,37t.); © Susie Knoll
are laid down in Title IV of the Agree- refunding value added tax. Given the 1990s. Over the course of time, the EU market can also more easily gain access to For the moment, large enterprises are (p.29); Steffen Kugler (p.6t., small cover photo l.);
Dmitry Kusnetsov (p.53); Guenter Maier (p.34b.);
ment with Moldova and in Title V of the importance of taxation for the economic graduated from being one of many to a business partners in other countries. This the main beneficiaries of the Association Erik Malchow (p.44); Vitaly Maximov (p.40); Minis-
Agreement with Ukraine. Particularly development of their countries, they preferred trade partner for both coun- means they are not only able to tap the Agreement, for instance poultry farmers, try for the Economy, Development and Tourism Chile
cooperation in economic and legal areas both also strive to improve the transpar- tries. According to data published by the EU market but also markets in countries who, however, required almost five years (p.4b); MonGerAlumni (p.46t.); Marat Nasarov
(p.55); NEW AG (p.38); Walid Qorish (p.47);
has a high priority for both countries. ency of their taxation systems. Moreover, National Bureau of Statistics of the Re- outside the EU. to fulfil the EU requirements. Such a Hamidreza Safari (p.51); Shohrat Shukurov (p.52);
The Agreements differ in some points, in both Agreements the protection of in- public of Moldova, almost 65 per cent procedure can currently take up to two Shutterstock(cover,p.5t.,14,18b.,19,23t,26,27,32,34,
primarily regarding the reform objectives vestors and other users of financial serv- of Moldovan exports in 2016 were to However, the opportunities mentioned years, depending on the economic sector. 35t.,36,42,43b.,44,45,48b.,49,50b.,55b.,57,58);
Fahime Taheri (p.50,51); VCCI (p.5b); WAK
of the two countries. ices through effective market surveillance the EU; exports to CIS countries only also pose risks. First and foremost, Mol- Nevertheless, Moldovan and Ukrainian (p.13,15)
dovan and Ukrainian enterprises must enterprises can use this period to look
Translators (English version):
change their ways of thinking and their for partners in the EU who can sup- Joanne Chapman-Rose, Norah Schmidt, Sarah
corporate philosophy if they want to port them when they enter the market. Smithson-Compton, Tomarenko Fachübersetzungen
be successful in the single market of 28 Finally, the integration of both countries Translators (Russian version):
countries. Where they have the choice, into the EU does not only offer opportu- Juri Alekseyev, Vera Garmasch, Runa Hammerschmitt,
Natalya Safronova, Tomarenko Fachübersetzungen
European consumers usually choose nities for enterprises; it also promotes the
quality over price. The manufacturing lo- fundamental modernisation of economic Publication frequency:
Twice a year
cation is decisive for European business- structures and paves the way for the de-
Date of publication of the current issue:
es when it comes to price versus quality. velopment of legal and civil institutions.
July 2017
Moldova and Ukraine have well-qualified That would also noticeably improve the
Editorial deadline for the next issue:
workforces and are direct neighbours of quality of life for every individual citizen 30 October 2017
the EU; therefore, they can offer enter- in Moldova and Ukraine.
All rights reserved. Reprints – also of extracts – only
prises from the European Union better with express permission in advance. While every care
framework conditions than many other has been taken, no liability is assumed for the con-
countries. tent. The cartographic presentations do not imply any
recognition of international boundaries or regions.
Dr Nazar Panych, LL.M., is a member
of the academic staff at the Institute of Funded by the German Federal Ministry for
The aim of the cooperation of both coun- East European Law at Kiel University, Economic Affairs and Energy (BMWi).
tries with the EU is to reduce obstacles, Christian-Albrechts-Universität zu Kiel.
ISSN 2195-8718
tariffs and quotas for goods and services.
Currently, there are still some restrictions
14 JOURNAL Issue 10 15
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