Real Assistance from CNCP Programme

The Programme leadership has followed the principle of continuous improvement ever since the Programme was launched. And although the results were achieved after a couple of years, they were significant. First of all, many individuals, with whom CNCP cooperated, comprehended commercial approach, which helped them achieve good financial results. Secondly, the initiative created more jobs than it was initially planned. Thirdly, a considerable amount of the local investment, equal to that provided by the Programme was attracted to CNCP project implementation. Fourthly, assistance was given to establishment of departments, which helped develop businesses in closed nuclear cities (CNCs) and nuclear institutes, participating in the Programme. For that purpose CNCP applied vast experience in economic development of problematic areas in Great Britain, invited skilled local specialists, both to the central office and in the cities, where the Programme was implemented.

The Programme uses four main tools, i.e. grants for creation of new companies, business training, establishment of commercial partnerships and economic development. Although the economic development is mentioned last in this list, the three previous elements are used to achieve it. Why are grants necessary and why are they the main component?

In the first place, grants are used to motivate people in CNCs and at the institutes. Initiatives, targeted exclusively on training or cooperation with British companies, seem ineffective, since at the initial stage of cooperation real investment is more attractive than an advice. Partnerships happened to be challenging and time-consuming. Not offend it leads to expected results, with few of them actually formed. Partnerships are easier to make once grants are received for business projects, when trust and mutual understanding is established and basic commercial knowledge is gained.

Secondly, project implementation with the support from experienced Programme consultants is the most effective training. Such projects create precedents and environment for setting-up and developing similar businesses, possibly without the Programme's assistance.

Thirdly, grants help create new jobs during a short period of time and provide salaries to project proposers, which is a good incentive for growing cooperation. Besides, newly created jobs help measure programme's effectiveness. It leads to a multiplicative effect, when greater outcomes are achieved at less effort, in other words the number of successful high-tech projects grows at an exponential rate, creating more and more jobs. The projects are multiplied, initially supported by the Programme's efforts and then by commercialization sectors at the institutes and business development agencies in cities. This generates competition for resources, ideas, partnerships, which speeds up economic development. Cooperation is initiated both within institutes and cities, as well as between similar entities in and beyond the Programme limits.

As new companies are established, natural need in additional training arises, and CNCP can offer such training. The range of educational courses is wide, from short consultations on certain business projects to specialized topical seminars and professional training in negotiations in English, project management, marketing and business planning. Top-managers from enterprises and city administrations visit different British companies to exchange experience in restructuring of defense complex, commercialization of R&D, and improvement of companies' management. The leaders have a chance to see how it was done in Great Britain, learning success stories and mistakes made.

The success of training initiatives predominantly depends on the interest demonstrated by the participants, when they organize training or partially pay for it. Annual conferences are an important part of the training processes. The participants have a chance to share experience, discuss new opportunities and proposals. An important role is played by the Programme newsletter and web-site; they help explain the main principles of CNCP and describe ways to be successful in commercialization.

When putting ideas into practice and visiting similar successful companies, project proposers realize that a wider market, i.e. international, can increase sales, help reduce production costs and extend business horizons. With such incentive and basis for development available, set-up of commercial partnerships become easier and more rewarding.

Monitoring, audit and evaluation applied by the Programme helped achieve planned results and be confident in the reporting data. However the tuning and achievement of the required level of the system took two years. The reporting process has a significant peculiarity, i.e. quarterly monitoring of the implemented projects is performed by experienced coordinators, working closely with beneficiaries and local leadership, helping fill in reporting forms and prepare activities on the Programme, and also check the information provided in the reports. Thus, they ensure uninterrupted interaction with beneficiaries, who received grants, and with having the relative experience can consult on how better implement this or that business project.

Audits are conducted twice a year. They play a crucial role in controlling accurate project implementation. Independent Russian auditors, who have extensive experience in conducting audits of various companies in Russia and NIS countries, are attracted to do this job. It is very important that they know specifics of local businesses. Should they find any violations or problems, they warn CNCP leadership in advance, which helps influence the situation and reduce potential losses or prevent them in case of misuse of grant funding. A small number of problematic projects (less than 5%) demonstrates a good preliminary project selection procedure and effective work of auditors. At the final stage of project implementation an independent intentional expert evaluates its outcomes. Lessons learnt are used to improve the Programme and eliminate similar mistakes in the future.

Thus permanently monitoring and improving work methods the Programme has achieved the expected result. Managers and project supervisors always try to make the beneficiaries comprehend that it is better to do everything correctly and become rich legally than to break the law and lose more at the end. Providing considerable freedom, yet ensuring on-going control, the Programme leadership stimulates project supervisors, project managers, coordinators, auditors, external experts and beneficiaries to use a creative approach when brining their ideas into practice. As a result, over 1200 new jobs have been created with a potential to create 3000 jobs totally to 2010, and a hope for economic growth in 6 Rosatom CNCs and 13 nuclear institutes in the republics of the former Soviet Union.

Sergey Klykov
CNCP Project manager

[Print version] 

webmaster@cncp.ru