A socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 155 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 75 countries worldwide.

The Roscongress Foundation has Telegram channels in Russian (t.me/Roscongress), English (t.me/RoscongressDirect), and Spanish (t.me/RoscongressEsp). Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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The Competitiveness of the Regions through the Prism of Increasing Labour Productivity: How to Engage, Manage, and Motivate
14 February 2019
08:30—09:45
KEY CONCLUSIONS
Pilot project on increasing labour productivity produces a tangible economic effect

Those enterprises that joined the project in late 2017 to early 2018 <…> 69% of those enterprises showed an increase in labour productivity by more than 10%. The enterprises that are already in the project <…> report 13% revenue growth, and a 19% increase in tax payments, — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

We are one of 25 pilot enterprises chosen to take part in the first stage of the project. <…> Rates of growth have been stable at our enterprise <…> for 15 years. <…> Four months after the start of the pilot workflow we halved the inventories for production in progress, — Ivan Kolchanov, General Manager, Suksun Optical & Mechanical Plant.

Changing production standards is the key element of increased labour productivity

The employees are becoming a lot more engaged in the processes at the enterprise. <…> The major goal, the main function of this project is a step-by-step change of production standards. We have started with industrial enterprises. <…> After a while, as soon as we have covered more regions, more areas, individual enterprises, organizations <…> this effect must become cumulative, — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

Will it help us reach the goal of increasing overall labour productivity? This project alone will not, that’s for sure. It must be one of the elements. There will be no increase in labour productivity without growing investment activities, modernization, and digitalization. All these elements are only working if the people are engaged in the process, — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

ISSUES
Quality employment deficit

Now we are in a situation where our country lacks quality employment. As enterprises become more efficient, they don’t cut jobs, on the contrary they start recruiting new personnel, — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

Increased labour productivity cannot be the only efficiency criterion

One of the risks of this project <…> is to make examples, failing at the same time to saturate the entire staff with culture. <…> Quality is definitely the major criterion. As we start building in quality in the workflow, we switch to the principle of ‘don’t make a defect, don’t accept a defect, don’t pass a defect’, — Nikolay Solomon, General Director, Federal Competence Centre (FCC).

Labour productivity is a very appropriate indicator, but it needs some additional weight, — Sergey Nedoroslev, Chairman of the Board of Directors, Kaskol.

Reduction of added value per job

If we use job added value <…> to evaluate labour productivity, <…> it dropped by 41% from 2014 to 2017. <…> According to our calculations, it cost the entire economy 43 trillion roubles of added value. The country is still dependent on raw materials, and the main production sectors, which yield most added value, are those that are involved in production and processing of raw materials. <…> Machinery and equipment productions are still among the last, — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.

SOLUTIONS
Systematic approach to increasing competitiveness

There are three ways of dealing with this problem. <…> The first block is everything about lifting barriers, when their role in risk reduction is incompatible with the harm they do due to excess, archaic regulation. The second block is everything about corporate culture. <…> The third block is everything that has to do with technology, automation. <…> There is also a fourth block, that is specialization, outsourcing, — Alexey Repik, President, Delovaya Rossiya (Business Russia); Chairman of the Board, Group R-Pharm.

Talking about systematic measures. <…> If we start with re-equipping enterprises, we have Industrial Development Fund. <…> As for training, there is a training programme for managerial personnel, that is capable of training around 3,300 people a year. <…> Together with Russian Export Center we provide support for exports. <…> We will review the legal barriers. <…> The system of tax incentives is going to be some sort of follow-up of the initial research, — Petr Zaselsky, Deputy Minister of Economic Development of the Russian Federation.

Choosing priority courses of development

The measures set out in the national project and focus on an individual enterprise, are not sufficient. <…> Almost all European countries, China, Canada have reformed their strategies. <…> If we sum up all those strategies, they all prioritize digital economy, and, besides, they choose priorities. <…> Our development should also follow courses, chosen priorities: economy of simple things, hospitality industry, technological security, green environment, mobility, happy longevity industry, affordable energy efficient home, and deep processing of raw materials, — Boris Titov, Presidential Commissioner of the Russian Federation for the Protection of Entrepreneurs’ Rights.

Emphasis on increasing added value

High labour productivity without competitiveness is a real case. <…> Therefore, here the emphasis is on the added value. You be highly productive in make something that no one needs — it’s crucial to avoid this trap, — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

You can be very inefficient but remain a monopolist that makes a product that everyone needs. <…> Here added value is often created because you place more and more value on your result, — Alexey Repik, President, Delovaya Rossiya (Business Russia); Chairman of the Board, Group R-Pharm.

Corporations participating in co-funding projects

Do you think that if something always is free of charge, the attitude towards it will be just that? And business co-funding will actually prove that the product you’ve made is really good, — Alexey Repik, President, Delovaya Rossiya (Business Russia); Chairman of the Board, Group R-Pharm.

It’s about commercialization of our services and about co-funding, <…> it’s about aid from big corporations, — Nikolay Solomon, General Director, Federal Competence Centre (FCC).

Granting tax incentives

We’re currently thinking about granting tax incentives to enterprises which reached certain target values in productivity. <…> Thirdly, it’s a partial compensation of costs to the enterprises which will join the process <…> of training their employees, — Nikolay Lubimov, Governor of Ryazan Region.

Establishing information environment for implementing projects on increasing productivity

In 2018, which we proclaimed the year of lean production, we managed to engage a lot of governmental bodies <…> and enterprises. It helped us establish an information environment during 2017 and 2018 <…>, in this regard it was very easy for us to join the new project on increasing labour productivity, — Nikolay Lubimov, Governor of Ryazan Region.

The material was prepared by the Russian news agency TASS