The Theoretical Framework

    "War is, therefore, not only chameleonlikein character, because it changes its colour in somedegree in each particular case, but it is also, as a whole, in relation to the predominant tendencies which are in it, a wonderful trinity, composed of the 
- original violence of its elements, hatred and animosity, which may be looked upon as blind instinct; 
- of the play of probabilities and chance, which make it a free activity of the soul; 
- and of the subordinate nature of a political instrument, by which it belongs purely to the reason" 
(Carl von Clausewitz, "On War", 1874, Produced by Charles Keller and David Widger, Jan.26, 2013).

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The Undeclared Wars: Genocide War of 1932-1933 vs. Anti-Terroristic War in Ukraine, 2014.

posted Aug 1, 2017, 1:15 PM by Oleksiy Fesenko   [ updated Feb 3, 2019, 10:18 AM ]

Oleksiy Fesenko,  August 01, 2017


"We cannot understand the western way of war without appreciating the particular characteristics that political authority took on in western Europe (Centeno, 2017)."

                 A great many people in Ukraine are certain that, war is malevolent and to be evaded. While, wars in Ukraine happen over and over again, causing deaths, demolition to property, still the politically biased leaders appear to be looking forward to an opportunity of centralization and usurpation of power 

Serials Spider - exploiter of the poor people was not true.

According to the Internet Encyclopedia of Ukraine, the census of 1927 in 
Ukraine clarified the role of the hired hand in grain production with 'kulaks' engaging 1.5% of the paid employees per family household. The Soviet poster depicts the farmers as the Serial Spiders, in fact it was not true (Deni, 1922).
through the wars of societies. Two such wars in Ukraine are: the War of 1932-1933 (The First War) and the War called the Anti-Terrorist operation that started in 2014 (The Second War). While the War of 1932-1933 in Ukraine and Anti-Terroristic War that started in 2014 are similar in that they both are the Wars of Societies, each of them have different goals, with the First War to spread the Communistic power worldwide through Genocide, with the Second War to separate the territories of Ukraine through the strategic artillery bombing. 

The First War and the Second Wars are similar in that they both are the wars of societies. The first was the war against the 'Kulaks'. In fact, this category included the prosperous households of the agricultural owners. This model followed Brazilian, Canadian and the U.S. models. Not a surprise this category of Ukrainians became the façade of the World capitalism in the eyes of that time local leaders: as the plethoric several waves of the migrants from Ukraine resettled to Canada, USA, and Brazil. Own land had been a dream and motivation for many of them, not the communism. In that way, the war of societies started from setting a goal to eliminate the internal strata of the prospective transformers of the society. Similarly, the Second war started from the latent ‘the political pendulum’ phase of multivectorism that oscillated between Russia and the West, of the mid-90s that finished in 2005 and less lately. Labor migration to East and West tapped the problem of the double citizenship of Ukraine with Russia or Hungary. The two representative societies became Russia and the West. The latent phase had finished in 2014 with the hot phase of the war in the East of Ukraine. In both cases, the War has far exceeded the sociological limit of 1000 casualties per year, had the latent phases, and the conscious decisions have been taken by the governments with the reported 3 000 Russian troops in the East of Ukraine (Sharman, August 24, 2017). These two wars have more than the division of society on the representative groups in common they both have the comparable participant having their specific goals. The goal of the First war was Genocide, to eliminate the entire category of citizens - the prospering farmers called the 'kulaks'.

 U.S.S.R. lacked the unlimited influence on the entire population, had no authority to disrupt the farmers and redistribute the fertile Ukrainian land to the collective farmers. Therefore, this ‘Iron’ idea was suspended until the emergence of the 'deadly substitution plan,' to change to the demographical structure of Ukraine by adding a layer from Russia: the engineered death to the Ukrainian peasants through eviction and denaturalization. The usual procedure of eviction involved the centralized decision to the production brigade (Fesenko, 2016). Execution often happened at night. The local authorities had a task to confiscate the entire property by dooming the families to the starvation and death. Ukrainian Genocide took the lives of the millions of the ablest and successful Ukrainian farmers. All this happened in the agricultural country: Ukraine. Nowadays, the Baltic Assembly and the sixteen world countries have recognized Holodomor in Ukraine as Genocide against the Ukrainians. The United Nation has recognized Holodomor as a crime against humanity.
The Goal of the Second war is to translate the War of Societies into the ‘hot’ phase. According to M. Centeno (2017), the Strategic Bombing takes the war from the trenches to the societies of the Enemy. The variation of the strategic bombing in Ukraine is the strategic artillery bombardment, causing fatalities to the non-militants, civil objects, infrastructure, or the civil aircraft MH-17 with 298 passengers.
According to Centeno, in this war "even if nothing is to be gained, I must destroy you. Because I fear, you may destroy me. The means of war in a sense have become the very ends" (2017). From this point, the Second war is also the socio-psychological war against the will of society to wage the war. The peaceful process of Minks Protocol on the Second War, in the present form, is inefficient, moreover is reaching a deadlock now. These two wars have taken place to the generations with the different understanding of the history and different aspirations, what is the lesson?

Although the War of 1932-1933 and Anti-Terrorist Wars might be different, both of them are similar total wars or the Wars of Societies. The frequent wars that happened in Ukraine lead to a blind alley. Ukrainians easily believe that just simply following and replication of the Russian or European model is a universal formula, they failed to follow some distinct way continuously. The oscillation between the two worlds is causing the mistrust from the neighboring countries. A next change of the policy of Ukraine into the opposite direction can only increase this mistrust and end in the next tragedy.


Centeno, M.A. (2017). The War of Societies. Paradoxes of War. Princeton University. Retrieved from

Deni, V. (1922). Serials Spider - exploiter of the poor people. Soviet Poster. Retrieved from

Maksudov, S. (1989). Kulak, in Encyclopedia of Ukraine. Retrieved from

Fesenko, O.F. (2016).The History of One Family: Holodomor 1932 - 1933. Retrieved from

Sharman, J. (August 24, 2017).Donald Trump 'actively reviewing' sending weapons to Ukraine after Kiev reports 3,000 Russian troops in the country. Independent. Retrieved from

Wikipedia. (2017). The war in Donbass in Wikipedia. Retrieved from

Edited 01.02.2018

"Aged Generation" vs. "Age Degeneration" in Ukraine: An Example from a Business.

posted Mar 8, 2016, 4:28 AM by Oleksiy Fesenko   [ updated Dec 26, 2017, 3:19 PM ]

The reasons for the age discrimination loomed large in the beliefs of the younger generation in Ukraine; many older people look beyond the low income and on the verge of survival. Can insight into the efficiency by an example of business provide any further explanation?

The reasons for the age discrimination loomed large in the beliefs of the younger generation in Ukraine; most people from the elder generation have crossed the read line separating them from powerty, many are staying on the verge of survival. A retirement payment under 100 USD per month is usual for Ukraine.Just imagine the assumed John Doe of millennials in Ukraine – ‘Emily’ with the egoistic intrinsic and immoral extrinsic motivation and a self-perception of the ‘perfect statue’, but what is the imagined ‘clay'?  

In her opinion, the elder generation is looking similar to the useless robots with the high, wear and tear, low efficiency and endurance.  The robots is the convenient comparison - as they do not need a payment of salaries, any retirement plan, human and the citizenship rights. According to ‘The Puzzle of the Stature and the Clay’ (Stanford Encyclopedia of Philosophy, 2009), the sculptor who has an intention to create a statue can imagine holding a statue and a lump of clay in his/her hands at the same time. According to Kant, time and space are absolute, but not age. Following to Leibniz's Law for any x and y, if x=y, then both is the same: accordingly the time that equals space can exist in our heads and age is just another opportunity for the effective creativity. But the effectve creativity requies the non-discriminative attitide to the reserves of the mind.

An Anecdote about the Ukrainian Army.

    A leftenant-colonèl approaches an aged senior sergeant asking "what f*ck of thoughts do you have in your head "?
    Then again a senior lietenant comes and asks the same question "what f*ck of thoughts do you have in your head"?
    The aged sergeant thinks a bit and answers "I think that you will both have the generically identical children".

    Source: Fesenko, O. (December 20, 2017). Identical Children. Retrieved from

As, this difference between the ‘robots’ and the ‘clay’ is imaginable. How playing the computer games (Nichols, 2017) instead of studying and reading the books can impact the forming minds? Not surprisingly that the next stage is a workplace procrastination and the computer games instead of tutorials to the employees. The Emily’s way of thinking targets efficiency, but the ‘clay of wisdom’ is in contradiction to ‘robotic condition’ of her mind. Can insight into the efficiency by an example of business provide any further clue?

According to Heisinger & Hoyle (2012), one of the expressions of ROI is the multiplication of the operating profit margin to the asset turnover.

ROI = Operating Profit Margin (operating income/sales) x Asset Turnover (Sales/Average operating assets).

The web performance metrics suggested there are two key measures to understand the success of a website they are interrelation between the ‘trust flow’ and the ‘peoples flow’ (, 2016). Even further, Noah Kagan in the article “Why Content Goes Viral: What Analyzing 100 Million Articles Taught Us” shared his opinion that 3x in peoples' flow drives 1x in Trust flow and visa verse (Kagan, 2014). Let us hypothesize that the trust flow has a correlation with the strategic positioning, and peoples' flow with the operational efficiency.

According to Michael Porter, the businesses can pursue two goals: reaching the operational effectiveness and positioning (Porter, 2008). To earn the profit the companies employ the efficiency, but to ensure the customer satisfaction, they must make the strategic decisions and display a higher effort to reach the strategic & operational effectiveness. The operational effectiveness can increase a company’s ROI in many ways.  

The difference between the ‘ROI’ and ‘operating efficiency vs. positioning’ is that the former is the financial tool, the latter is strategic. However, the question was, can the strategic decisions contribute to return on investment and success the same way as the operational efficiency (Chart 1).

Chart 1: Impact of the Operational Efficiency and Strategic Positioning on Return on Investment (ROI).

Chart 1: Impact of the Operational Efficiency and Strategic Positioning on Return on Investment (ROI).

Fesenko, O. (2016, March 08). Chart1: Impact of the Operational Efficiency and Strategic Positioning on Return on Investment (ROI). In "Aged Generation"  vs. "Age Degeneration" in Ukraine: An Example from a Business. Retrieved from

1) According to Chart 1, the new and the unfocused companies usually start from the good ideas and low investments. Although the businesses have a little knowledge, low trust, and even relevance, the idea can drive the entire business. According to BCG Matrix (Arline, 2015), the starters with the right ideas are the ‘question marks’ of business - the energized companies with the high growth prospects and the little market share. An emergent company has the valuable asset it's talent pool that drives operational effectiveness and ROI.

Sales/Average operating assets: Steve Jobs started doing business in a garage with the small physical investments and operating assets, his team’s asset was the enthusiasm and vision.  

Operating income/sales: Most startups failed at the beginning, because of a deficiency in the cash flow and lack of the operating income to cover the initial expenses. 

2) The next growth stage is ‘Stars’. The Stars have the differentiated activates or the similar activates performed in a different way to grow fast (Porter, 2008). For them, the operational effectiveness is not critical as they have a unique position and no competitors in their category. Therefore, the strategic positioning drives the operational effectiveness.  The observation is that the strategic positioning drives asset turnover and operating profit margin when the operational efficiency and ROI are rising at a low rate.

Sales/Average operating assets: A company can display the high sales under the high price tag, low expenses for advertisement without a necessity to implement the newest technologies and the management approaches.

Operating income/sales: A company can reach an economy of scales, but its strategy sooner targets for faster and cheaper manufacturing rather than achieving the higher quality.

3) On the next, growth phase, a business turns into a ‘cash cow’ with large market share but a low growth rate. On this stage, a company has many competitors who emulate a business under the low price tag or by reaching the high effectiveness. The observation is that the operational efficiency drives the operating profit margin and asset turnover: the operational efficiency and ROI grow at a low rate.

Sales/Average operating assets: As the sales can stay at the same level, the operating assets are very likely to rise because of the intensified competition, lowering costs and improving value, reaching the absolute improvement in operational effectiveness. A company has an opportunity to focus a business by advertisement or through the corporate social responsibility.

Operating income/sales: Here, are coming to play the total quality management, continuous improvement, and best practices. A company has to reach the maximum value at a given cost, use the best available technology, top skills, and the best management techniques.

4) Finally, a business enters into the ‘Dogs’ phase with a low market share and a low growth rate. On this phase, operational efficiency drives operational profit margin and asset turnover; a company should make the unjustified efforts for reaching stability in the operational efficiency and ROI.

I will conclude that 1x in the ‘strategic positioning’ can drive ‘asset turnover’ and ‘operation profit margin’ to the strategic effectiveness at 3x of ROI. At the same time, the 3x in ‘operational efficiency’ can drive the ‘operating profit margin’ and ‘asset turnover’ to increase the strategic effectiveness at 1x of ROI and is diminishing to below the zero when there is no market and growth.

Is this a sufficient proof that having ‘clay of wisdom’ even in the gray heads is not the same as the automatic reflection of reality similar to the ‘Dogs’ phase in business? The other question is how playing the computer games instead of reading the books can defeat from the ‘internal robot’ – the ‘Question Marks’ in business. Moreover, there are too many computer games now, which ones to trust.  Should the trusted efficiency be like this?


Arline, K. (2015). What Is a BCG Matrix? Retrieved from

Heisinger, K. & Hoyle, I.B. (2012). Accounting for Managers (v. 1.0). 11.4 Using Return on Investment (ROI) to Evaluate Performance. Further Analysis of ROI. Retrieved from

Kagan, N. (2014). Why Content Goes Viral: What Analyzing 100 Million Articles Taught Us. Retrieved from (2016). Site Explorer. Retrieved from

Nichols, H. (July 10, 2017). How video games affect the brain. Medical News Today. Retrived from

Porter, M. E. (2008). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. Harvard Business Review, 86(1), 78-93.

Stanford Encyclopedia of Philosophy. (2009). Material Constitution. Retrieved from

Edited December 27, 2017

Personal Growth: Ukraine vs. the U.S.

posted Feb 19, 2016, 5:28 PM by Oleksiy Fesenko   [ updated Feb 20, 2016, 12:25 PM ]

        On the other hand, the moral philosophy can enrich the person, and contributes to the common good and the citizenship. It's like a morality to give bread to the victims of famine suffering from starvation or to help to integrate a person suffering from a difficulty to find a job into a future life.  In the former case, there is no morality by giving more than necessary to the hungry; in the later - sky is the limit can add to the personal growth. 

        Regrettably, the win for Ukraine was not in the shared value domain, but in the credits from IMF and hopes to find the personal integrity in the future.

The recent visit of one of the Ukrainian opposition leaders to the U.S. State Department is the news important mainly locally in Ukraine and Russia (Bortnik, Feb. 14, 2016) was an albatross around the necks of the Ukrainians. The Ukrainian opposition suggested choosing between the devil and the blue sea, pending at that time decision about a position of the Prime Minister in Ukraine. Not surprisingly the personal relations of such a caliber might prescribe the high levels of the personal growth and self-determination, from each party. But, how comparable can be those two levels?

The level of the personal growth is very much individual. The opportunities for the personal growth much correlate to the particular needs (the Maslow's hierarchy of needs), most of all to the need of self-actualization which is at the top of the pyramid. In real life, this pyramid has shifted from the traditional into the top-down in the academic environment and to the inverted in the corporate entrepreneurship environment and finally changed into the flat structure in the world of the shared values (Figure 2). 

Personal Growth: Academic Environment.

How easy can be recording or deleting information on/from the hard drive, and who needs a student having only the cognitive skills? To prepare the students for the future careers, the Universities offer to the graduates the career training, extracurricular, leadership, communication and the other activities.

Globalization provides the updated opportunities to the graduates as well as the new level of connectedness, technological advance, and the competitive environment. The market is looking forward to the service oriented and highly motivated workers. The institutions accordingly reflect this in their mission statement. Below is the strategic mission statement analysis of the top U.S. and the Ukrainian Universities.

The U.S. Universities:

According to the National Universities ranking (U.S. News Education, 2016) the top three U.S. Universities are:

A)    Princeton University:

To provide enriching educational and personal growth experiences through outdoor and adventure challenge activities to members of the Princeton University community and urban youth in the Princeton area encouraging leadership development, skill development, and stewardship of the natural world" (Princeton,  2016).

Princeton seeks to develop the social and leadership skills through the outdoor extracurricular activities.

B)    Harvard University:

 “We are committed to creating and sustaining the conditions that enable all Harvard College students to experience an unparalleled educational journey that is intellectual, socially, and personally transformative "(Harvard College, 2016).

Harvard aims to graduate students with the highest level of the transformation capabilities – to transform oneself and the others.

C)    Yale University

"Yale educates aspiring leaders worldwide who serve all sectors of society" (Yale, 2016).

"The purpose of the residential colleges is to provide an intimate and supportive community designed to promote the social, intellectual and personal growth of Yale undergraduates." (Yale College, 2016).

Yale expressed a clear direction integral part of the personal growth.

The Ukrainian Universities: The Below Par Standards.

According to the national ranking of the Ukrainian Universities (Osvita.UA, 2016) the leading three Ukrainian universities are:

A)    Taras Shevchenko National University of Kyiv

“… classic research-based university, with a vision that highlights education, research, and innovation" (Hubersky, n.d.).

The University does not look outside the academic and the research curriculum.

B)    Kyivska Polytechnika

Creation of competitive advantages for participants and partners of Science Park “Kyivska Polytechnika using integration of education, science and business." (Kyivska Polytechnika, 2015).

The framework of this mission statement is the logical system thinking.

C)    Karazin Kharkiv National University (Karazin Kharkiv National University, 2016)

    The Karazin Kharkiv National University provided no Mission Statement.

Mission statement is a part of the strategic plan is establishing the default coherence standards across the institution. An organization without a mission statement or a direction to the personal growth displays a utilitarian approach to education. By cutting out the mission of personal growth, the Ukrainian institutions eliminated a pattern of consideration. So simple, but for all: the students, teachers, parents and society it makes a difference to what should be the motivator: for the students to study; for the teachers to carry out a responsibility. The strategy, actions, attitudes, beliefs, motives should be coherent to each other.

On the other hand, the moral philosophy can enrich the person, and contributes to the common good and the citizenship. It's like a morality to give bread to the victims of famine suffering from starvation or to help to integrate a person suffering from a difficulty to find a job into a future life.  In the former case, there is no morality by giving more than necessary to the hungry; in the later - sky is the limit can add to the personal growth.

Not a surprise that one of the four biggest world borrowers 2015, according to the information by IMF was Ukraine (International Monetary Fund, 2016). Regrettably, the win for Ukraine was not in the shared value, but in the credits from IMF and hopes to find the personal integrity in the future.

Personal Growth: Corporate Entrepreneurship.

According to Bloomberg, the corruption level in Ukraine is one of the highest before the pro-European street protests in 2014 has plummeted in the last years (Krasnolutska & Choursina, 2016). Ukrainians live in the environment where the legal entities were disintegrating the country through the corruption:  ‘a pattern of entrepreneurship’ through the corruption. What about the big business?

According to The Saker (Samofalova, 2016) the exodus of the foreign investors from Ukraine continues, the most recent losses were American Groupon Inc., Asus, Shopping malls and the smaller retailers, while the larger foreign corporations in the financial and oil and gas sectors are eagerly looking forward to an opportunity to retreat.

For what avail is the corporate entrepreneurship, when the revolutions have proved to be cyclic and the country backs to the square one. Instead of observing the property right, the integrity, the corporate responsibility, the country is preparing the graduates who are going to be useless to the society. Why such goals as education, science, personal growth, citizenship, corporate social responsibility contradict to each other?

Logically the academic strategies are correct, but historically they are contradictory following the vice cycles again and again. This contradiction is evident as the graduates have no preparation to serve all the stakeholders equally - the family, business, society, community: from this mostly suffer the community and the large businesses. What about the corporate entrepreneurship in the U.S.?

Forbes (Murphy, 2015) quoted the leading U.S. companies, the tree first among them were:

A)    Cargill

"Personal growth through the development of new skills, knowledge and abilities is imperative to Cargill's success We will provide you with the tools, opportunities, and a culture that values and supports employee growth. Making the most of the opportunities, however, begins with owning your responsibility for the strength of your network and development plan” (Cargill, n.d.).  

The company believes in the quality of the talent pool and the further personal development.

B)    Koch Industries (Molex)

"There is considerable power in having a shared vision, but only if we use it to determine where and how we can each contribute to Molex creating the most value" (Slark, 2014).

The company needs the motivated employees; the vision of the employees is the essential attribute of the shared vision of the enterprise.

C)    Dell

The candidate to work at DELL should meet the following requirements:

1.      Driven, self-starting undergraduates

2.      Minimum cumulative GPA of 3.4

3.      Business internship experience

4.      Global experiences

5.      Extracurricular activities

6.      Demonstrated leadership initiative

7.      Effective communication skills” (DELL, n.d.).

   The skills (1), (3), (5), (6), (7) are the personal development skills: many colleges in the U.S. have committed to developing these skills in their students.

        The Corporate entrepreneurship refers to following the personal development plans, drive and self-starting skills, business internship experiences, understanding the global multiculturalism and the new opportunities, extracurricular activities, developing leadership skills, effective communication skills, and vision.

Different Alternatives in the Personal Development Supply/Coprorate Demand Matrix

     As a result, from the Personal Development Supply / Corporate Demand Matrix, come two market positions of the alternatives (Figure 1):

Alternative 1 – Offer by the U.S. Universities of the graduates with the extracurricular experience, personal growth, and high self-determination. These graduates can entirely feet to the corporate entrepreneurship oriented environment.

Alternative 2 – Offer by the Ukrainian Universities of the graduates with the academic skills, which can perfectly fit the corrupt Ukrainian business environment.

Figure 2 Flattening of the Maslow's Hierarchy of Needs Pyramid

 The present Generation Y or the Millennials not only enjoys the pleasures of access to the Internet but also is lacking trust and advice in the endless oceans of the information flows, is like a babe in the woods. The universities should ‘donate' the new skills to orient quickly in this dynamically changing environment: there is no word 'less' there is the only word 'more' here because this will be moral.

 Inversely the politicians, the beggars of money are the representatives of a banana republic instead of Ukraine. They have preferred the political perspectives looking into the future not further than the crow flies. What about granting access to the shared values: begging money for the political needs should arise the clarion cry of ‘less', because ‘more’ will be amoral.

The grant-givers can understand that they are funding the political activities – that is immoral. 

The shared values (Figure 2) have no sense with a bad taste in the mouth, without courteousness recognition of the property right, tolerance, and respect for the co-citizens and oneself. All the Generations in Ukrainian need the long-term perspectives. Personal development is not the one-moment decision or the deliberate process because it involves the culture.



Bortnik, R. (Feb. 14, 2016). Timoshenko and Nalivaichenko: Projections to the Possible Alliance. Retrieved from

Cargill. (n.d.). Personal Development. Retrieved from

DELL. (n.d.). Leadership Development Program. Retrieved from

Harvard College. (2016). Mission, Vision and History. Retrieved from

Hubersky, L. V. (n.d.). Rector's introduction. Retrieved February 19, 2016, from

International Monetary Fund. (2016).Fast Facts. Retrieved from

Karazin Kharkiv National University. (2016). Home Page. Retrieved February 19, 2016, from

Kyivska Polytechnika. (2015). Mission, Aim and Main Tasks. Retrieved February 19, 2016, from

Krasnolutska, D & Choursina, K. (2016).Ukraine Entering `Serious Political Crisis' After Minister Quits. Retrieved from

Murphy, A. (Oct. 28, 2015).America's Largest Private Companies 2015. Retrieved from

Osvita.UA. (2016). Ranking of the Universities "Top-200 Ukraine" - 2015. Retrieved from

Princeton. (2016). Outdoor Action Program Mission Statement. Retrieved from

Samofalova, O. (Feb. 01, 2016). Mass exodus of foreign businesses from the Ukraine. Retrieved from

Slark, M. (2014). A new Molex vision for a more powerful future. Retrieved from

U.S. News Education. (2016). National Universities Rankings. Retrieved from

Yale. (2016). Mission Statement. Retrieved from

Yale College. (2016). Mission Statement. Retrieved from

System Related Changes: The Focus on the Government and the Parliament of Ukraine.

posted Feb 10, 2016, 1:47 PM by Oleksiy Fesenko   [ updated Feb 3, 2019, 10:14 AM ]

        Today Ukraine is in a state of transition and the Ukrainians are facing the continuous miscommunication, burnout, especially frustrating were the fights in the Parliament of Ukraine. By changing the system, the country can choose the smooth transition. Changing the system is like changing a quality of wine or Vodka in Ukraine. For example, the trademark of Ukrainian “Khlebny Dar” grain Vodka (Ukrainian Business, 2016) featured the mission for furthering the rich national traditions of the modern alcoholic beverages and promoting the cultural context to vodka-drinking. Everything in the production of vodka matters, from the quality of grain and special spring water to the context of the vodka drinking. Everything in the governance matters according to Waterman is system, structure, style, staff, skills, strategy and superordinate goals (1980 p.17).

At Loggerheads Around the Focus.

        There is a challenge, how to refrain from embracing the entire McKinsey 7S Framework. The thing is in improving the ability to focus on the dominant dimensions of the highest importance for the Ukraine at the moment. Once the government eliminated the critical dimension it should be ready to refocusing to the next challenge.

        Not surprisingly, one of the critical dimensions for Ukraine now is ‘Strategy’. For the banking sector and the investors as IMF, the ‘Strategy’ is the ‘System’.

        According to the Michael Porter’s Generic Strategies, the strategies can be focused and unfocused. The Government of Ukraine is really in the center of the focus of Ukrainians.  There are many ways to focus and un-focus on the government:

Back to Square One: Focusing.

        One of the ways of focusing the strategy by the Government and the Parliament is to increase the social responsibility often referred to as “corporate social responsibility” or ‘corporate citizenship’. There are different ways to the focus the policies:

-    Meeting the requirements of IMF, and the international commitments;

-    Meeting commitments to the people, the electorate;

-    Fighting the different types of the discrimination;

-    Create conditions that the businesses should practice the sustainable practices;

-   Manage the resettled people by providing housing, farmland, jobs, finding the third party resources for the support projects;

-    Maintain the level of the minimum salary level, raise local income levels;

-    Support to the community through the projects covering education, culture,

-    Electronic government;

-    Global leadership in one of the sectors (education, R&D, etc.)

-    Infrastructure, sport, health, culture, business, etc.

Unfocusing: Reading Between the Lines.

         There are also the moral ways to un-focus the policies:

-    To scale down the decision-making capabilities to the regions;

-    To create the free trade zones, decentralize and increase freedom for the investors

.The Boldfaced Lie: Unfocusing.

        The amoral policies to avoid responsibility for the unfulfilled commitments can have the following consequences:

-    Wars, the internal conflicts;

-    Fighting in the Parliament.

Bad Taste in the Ukrainian’s Mouths: Stuck in the Middle.

    Ways to stuck in the middle between the focusing and unfocusing:

-    Non-stop change without even the small wins;

-    Imitation of the foreign experience without taking into consideration of the local specifics;

-   Substituting the correctness by the populistic ideas, history by the blindness, justice by the bureaucracy and corruption, human rights by the unclear laws and bribes;

-    Supplying the low-quality products under the guise of the internal difficulties;

-    Preventing in reaching the international market to the home suppliers, because one’s own environment was not capable of facing the challenge the global market;

-    Running inflation and taking the loans without understanding how to repay in the future;

-   Setting the high taxes including on the freelancers, while allowing the outflows of the capital to offshores;

-    Decreasing the political competition by creating the portfolios of the voters through the compensation policies;

-    Challenging the suppliers though the high tariffs;

Morality Issue: Costs an Arm and a Leg.

        The country can incur the different costs as a result of the immoral policies and the conflict with the community:

- Revolutions and the internal military conflicts;

- Force majeure actions impacting the businesses activities;

- Security concerns, including penalties on the contracts, increasing security expenses - guards, transportation, patrols, block posts and reduced mobility;

- Cost for trading and management of the guards, military, talent pool goes to army instead of the business;

- Project alteration, relocation of facilities, offices, legal concerns, contracts redesign;

- Migration of people from the places of conflicts;

- Risk concerns entail the insurance risk, the banking collapse, decreasing bank ratings, additional training, and legal expense;

- Damage of property, through explosions, mines in the area, destruction of the residential and business premises;

- Negative growth rate of GDP, closed factories, relocation or temporary shutdown of operations, lost opportunity for innovation and development, decrease of motivation of the employees, indifference, obstacles to supply on time, incoherent regulations;

- Depreciation of the property, land, inability to repay loans or debt, absence of development programs and incentives, damage to the share price;

- Delays in taking the necessary legislation, delays due to the security concerns or risk management, remediation of the broken relations, arrests of people, fatalities, burnout, low discipline, and damage to morale, post-traumatic syndrome, compensation costs, and default of synergies between the opposing opinions.

- Government and brand: loss of the competitive edge, and the loss of trust.

Abandoning the Baptism of Fire.

        According to Waterman (1980), the arithmetic increase in a number of the participants increases the number of the interactions in geometric progression. Is the number of the member of the parliament the albatross around the necks of the Ukrainians - 421 people deputies? Some smaller fractions have almost no conflicts. Why? What are the ways to decrease the number of interactions and increase the efficiencies?  By the way, federalization is one of the solutions as the empowered regional governments would process the smaller number of interactions by operating very efficiently.


        Very likely the solution is in the introduction of the electronic government, reduction of the numbers of the number of the members of the parliament or introducing of the bicameral parliament system.

        The less painful and efficient approach can be in managing change through a systematic approach by operating the 7S categories instead of biting the bullet of the multiple personal interactions.



Ukrainian Business. (2016). Alcohol Traditions, OOO Trademark "Khlebny Dar". Retrieved from

 Waterman Jr., R, Peters, T, & Phillips, J (1980), 'STRUCTURE IS NOT ORGANIZATION',Business Horizons, 23, 3, p. 14.

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