Mykhailo Merkulov, CEO Arricano, took part in CEO2HRD club meeting

On August 9, 2016, Mykhailo Merkulov, CEO Arricano Real Estate plc, attended the meeting of CEO2HRD club members (chief executive officers for human resources directors). The Club primary task is to foster a networking space for the first persons of companies and HR directors of major companies where they are supposed to exchange ideas, experience, cases, and approaches to creating efficient teams of companies and organizations for achieving business goals.

Amrop international company had been the initiator of club meetings. Amrop is the world leader in headhunting of executive leader managers, operating in 54 countries, and ranking No. 1 by its geographical coverage and No. 6 by sales impact. A partner of Ukrainian company branch Alex Dairabekov says that Amrop company recognizes the importance of effective communication between CEO and HR directors of major companies, because it is direct and involved communication “ties off” that advances the communicational standards of the executive level. It makes it possible to explore carefully the question of the day, to form trends and establish global partnerships with due consideration given to the context of the country.

Meeting Mykhailo Merkulov is the second meeting of the Club this year. In general, there are to be four meetings a year.

Club members appreciated the opportunities such meetings provide for exchanging experience, nurturing business and social environment, and enriching practical experience of all participators.

10 HR lifehacks from Mykhailo Merkulov, CEO Arricano

1. When you are managing your company in crisis situation, business development tasks can be addressed by managing Special Forces.

In Arricano, all applicants are put through a three-stage interview that implies IQ+EQ+VQ parameters testing. In short,

IQ is everything connected with immediate duties; the interviewer is a field professional;

EQ is a capability to cooperate, to build relationships; the interviewer is division/department head;

VQ is an in-born quality – a will to live, life energy quotient, ability to implement changes; the interviewer is CEO. First two qualities are well-known, the third one is less popular. Paul George Claudel, author of the term «VQ - vitality quotient», suggests a questionnaire for VQ testing simple enough in his book «The Project To Live».

2. There are two approaches to staff management in business: every person is just another cog in the machine, there are no irreplaceable workers. And the second one: every employee is a superman, and losing one incurs irreparable damages to the company. Advantage provided by the second approach is a better chance to stand tall in extensive social and economic crises.

Arricano has adopted the second approach, where one individual is equal to three. It is managing Special Forces that are able to fulfill tasks of a different level. Business schools do not instruct on that point.

3. Within organizations, interaction paradigm change from hierarchical to a partner, democratic one, is a long-term strategy and a laborious task. For certain, there will be the discordant not ready for changes.

Mykhailo Merkulov states that employing best professionals available is profitable. High-rank experts want to develop and rise, they are able to achieve breakthroughs and hold the quick tempo. They cost 2 times more but work 3 times better.

4. If your organization is progressing, a regular performance assessment as to its correspondence with the development strategy lets you to shake free of the ballast and detect missing processes and functions.

Arricano has cut its staff more than 30% for the recent two years, and yet, its trading profit rate, according to 2015 results, has risen 25%, due to staff rotation, among other things. Staff rotation was carried out according to 2 criteria – performance results and realization of corporate strategy.

5. Personalizing relations is resource-rewarding for business. When employees don’t know one another, it impedes communication and slackens down the business processes.

For 2015 New Year corporative party, Arricano had prepared a presentation on hobbies of the employees. One person was represented by one slide. It was continuously screened on displays during the party evening and was getting acquainted both people who had worked side by side for already several years and newly-employed workers. Many facts were astonishing to all those present.

6. If a person has an all-absorbing hobby, he achieves more in business than his or her hobby-less colleague.

7. It is important for employees to be involved in the change process, to be needed and concerned with the company development.

In the end of 2014, Mykhailo Merkulov compiled a letter addressed to all the employees asking to suggest ideas within a month considering the necessary changes. Every idea adopted for implementation was worth UAH 100. As a result, the employees thought up 212 ideas, 119 of which were accepted. A year later, more than 50% had been put into effect, the rest waiting for applying. The staff is well aware of the business subtleties, that is why, apart from sound ideas for development, this method ensures a reliable internal audit. The employees are involved, they see their influence on company rise and note a different level of internal communication.

8. The vision, mission and strategy of company development might be very well outlined by a managing team. Values are to be treated on a more personalized basis, because shared values provide a foothold for interaction for strategy realization.

All Arricano employees took part in identification of values. The coinciding values were adopted as common company values.

9. Detecting the things in business that annoy your clients (internal clients B2P, B2C, B2B) gives an understanding, sometimes unexpected, that little steps can impact the global matters.

Arricano introduced three targeted programs of eliminating irritants for three groups – employees, partners and guests (about 10 steps). It resulted in a multiplication effect, and the interaction scheme shifted towards partnership.

10. If CEO drives the development – it will take place. If CEO monitors the process of change implementation, the changes take place. CEO initiates innovational processes. CEO participation in a project raises the status and importance of the project and increases involvement of the staff.

Mykhailo Merkulov regularly meets his employees tête-à-tête.

1 time per year he meets representatives of every division (heads not present) where he is acquainted with the most burning staff issues. Problem solutions are found on the spot and are put into practice quickly.

1 time a month he meets department/division heads for correction and ranking of business tasks. Pareto rule works at its best.

And finally, 11! Sparkling eyes, wish to come to grips with complicated business tasks, desire to cope with a challenge – are infectious.

And Mykhailo Merkulov inspires everybody in Arricano.