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HARVARD company evaluate, March 2005 (Make it uncomplicated) [Single factor journal]

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Extra info for Harvard Business Review - March 2005

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Pavlo Zhuk suddenly realized he was shouting, though for once the telephone line to Kiev was crystal clear. Zhuk was in a state. The grandfather clock in his sprawling farmhouse in Redwoods, California, had struck 6 am, and the young software entrepreneur had just come down to the kitchen when the telephone startled him. His friend Kostya Hnatyuk, who headed Zhuk’s software development center in Kiev, was calling to say that the center had had visitors that day – and not very welcome ones. Hnatyuk patiently repeated what he had said a moment earlier.

Second – and this is something most firms don’t realize – companies create a bad business environment by indulging corrupt politicians. When organizations are corrupt, they lose legitimacy. As a result, people demand more regulation, more taxes on companies, and more harassment of firms. That sets off a vicious cycle of policy intervention– and more corruption. It is up to Zhuk to decide what he wants to do: create one software center in Ukraine and risk damning his business in people’s eyes, or work to increase the legitimacy of Ukrainian business, even if that means pulling out.

Naomi, 34, is a case in point. In an interview, this part-time working mother was open about her anxieties: “Every day, I think about what I am going to do when I want to return to work full-time. ” This is despite an MBA and substantial work experience. Three years ago, Naomi felt she had no choice but to quit her lucrative po- The High Cost of Time Out Though the average amount of time that women take off from their careers is surprisingly short (less than three years), the salary penalty for doing so is severe.

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Harvard Business Review - March 2005 by Harvard Business Review Writers


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