“The problem of public administration is that in all the four industrial revolutions, it remained and remains the same. He’s got a giant process management, almost no project management and the total lack of innovation. Need to translate into innovative technologies and move to a figure and then breaking the model of governance that we have,” — said Gref.

He added: “the pyramidal structure will die first.” Is it really so? Why all of a sudden innovation cannot occur in hierarchical structures? Just innovation and occur in hierarchical structures. Before the war, for example, the most innovative government in the world was Nazi Germany. The Germans built a magnificent production, they had the world’s best military equipment, aircraft. They first started to make real missiles, to deal with nuclear energy. But it was absolutely hierarchical, totalitarian state.

After the war, the most innovative government was the Soviet Union with a completely hierarchical system of management. The USSR put the first man into space, developed nuclear energy, has created the first computer. Until 80-ies it was the most innovative state.

I don’t understand why Gref cites the example of bill gates. Microsoft has also completely hierarchical management. In it the word gates, and then Ballmer, it was the law. Same story with Apple. The company has had creative designers and developers, but the structure was completely hierarchical. It was a one man company.

I suspect that exactly the same story in the savings Bank — it seems to be a very innovative Bank, but there is an authoritarian management of the Mr. Gref far as can be judged from the outside. Therefore, the argument that the hierarchical structure does not allow innovation is just a myth. I personally don’t know of other structures that enable you to create innovations.

In the US the main innovative structure, which invented mobile communications, Internet, search engines, remains the Ministry of defense, and plus intelligence. Take also, for example, Huawei and Samsung. This is a very innovative company, but also with a rigid chain of command. The smartphone Huawei and Samsung have long overtaken Apple in terms of innovation.

That is the very statement of the Gref initially just wrong. It is unclear why suddenly we need to change the management structure? The structure of government has survived all the industrial revolution in the world unchanged, “he says,” well, maybe it is necessary to think, why? And not to touch what works.

Any activities necessary administrative flexibility, the ability to distribute authority. Example — innovation under Stalin, when Beria supervised from both missile and nuclear projects, in a very free manner, with the delegation. Or build an army when you have a rigid hierarchy, but any commander of a platoon level, company, battalion is forced to make independent and spontaneous combat decisions and take responsibility for their people independently. All this shows that flexibility in managerial decision-making, delegation — mandatory requirements for hierarchical control, since the Trojan war. And that “guerrilla” structure usually lose without the support of hierarchical States.

The assertion that the administration of the state — out of project management, is also incorrect. A good example: here the Crimean bridge was built ahead of schedule. This same project? At the Olympics in 2013, built a whole new city of Sochi. It is not project management? Camera in 2012 put at the polling stations and made a portal for public viewing for two months is a staggeringly successful project.

Just about everything is done in the state is project management, not process. The process is to do so in the housing office or the MFC is constantly routine issued correctly and quickly with the required documents. This is a useful thing. But the opening of the Northern sea route, or laying high-speed road between St. Petersburg and Moscow is project management. That is all this is already up and running.

Recorded On “The View”

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