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Bulgaria in Transition:  Training a New Generation of Managers for the Turbulent World John Pourdehnad Dinner Lecture, Tuesday, June 17, 2008 Organizational Dynamics Degree Programs University of Pennsylvania
Where is  Bulgaria ?
http://www.state.gov/r/pa/ei/bgn/3236.htm Area :  110,910 sq. km.
Climate Continental--mild summers and cold, snowy winters.
People
Population(2006): 7,679,290
Growth Rate (2006): -0.51%.
Religion (2001) Bulgarian  Orthodox 82.6%, Muslim 12.2%, others
Ethnic groups  (2001):  Bulgarian 83.94%,  Turkish 9.42% Roma 4.68% other 2% (including Macedonian,  Armenian, Tatar, Circassian).
Health : Life expectancy (2006)— male 68.68 years; female 76.13 years.  Infant  mortality rate (2006)--19.85 deaths/1,000 live births.
Work force   (2005):  3,34   million Agriculture--11%;  industry--32.7%;  services--32%
Government ,[object Object]
Economy ,[object Object]
Bulgaria's economy contracted dramatically after 1989 with the collapse of the COMECON system and the loss of the Soviet market, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew in 1994 for the first time since 1988, by 1.4% and then by 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to shortsighted economic reforms and an unstable and de-capitalized banking system.  Under the leadership of former Prime Minister Ivan Kostov (UDF), who came to power in 1997, an ambitious set of reforms were launched, including introduction   of a   currency board regime ,  bringing growth and stability to the Bulgarian economy. The currency board contained inflationary pressures and the three-digit inflation in 1997 was cut to only 1% in 1998. Following declines in GDP in both 1996 and 1997, the Bulgarian   Government has delivered strong, steady   GDP growth   in real terms in recent years. Prime Minister Simeon Saxe-Coburg's economic team of young, Western-educated financiers continued to implement measures that helped sustain stable economic growth and curb unemployment. Measures   introduced by the government were targeted at   reducing corporate and individual taxes ,  curtailing corruption , and   attracting foreign investment .  The government also   restructured the country's foreign debt, revived the local stock market, and moved ahead with long-delayed privatization of some major state monopolies .  As a result of this progress, in October 2002 the European Commission declared Bulgaria had a "Functioning Market Economy."  Bulgaria's current government has continued these reforms, and   in 2007 the country joined the European Union .  According to the World Bank, in 2006 Bulgaria attracted the highest levels of foreign direct investment, as a share of GDP, among Eastern European countries. A growing current-account deficit (estimated to have reached 20% of GDP at the end of 2007) and excessive reliance on foreign capital inflow render the economy vulnerable to external shocks. In early 2007, to attract additional foreign investment, the Bulgarian Government lowered corporate tax rates to 10%, reportedly the lowest rate in Europe.  A flat-tax rate of 10% for personal income, in place as of January 1, 2008, will further decrease domestic labor costs and help reduce the share of the "gray" economy . In response to local governments' demand for financial independence in 2006, parliament passed fiscal decentralization of municipalities, granting them authority over collection and administration of some taxes, thus further enhancing local economic stability.   Despite Bulgaria's many marked successes, organized crime and corruption remain problems.
75/2008 - 2 June 2008  Europe in Figures –  Eurostat Yearbook 2008  The diversity of the EU through statistics
The population of the  EU27  reached 495 million in 2007, compared with 479 million in 1997, a growth of 3.4%. The Member State with the highest population growth was  Ireland  (+18.0%), followed by  Cyprus  (+16.9%),  Luxembourg  (+14.2%) and  Spain  (+12.5%). The population fell in eight Member States, with the largest declines in  Bulgaria  (-7.9%),   Latvia  (-6.7%) and  Lithuania  (-5.7%).  In 2005, the world population was 6.5 billion, more than double than the 3.0 billion recorded in 1960. The share of the  EU27  has, however, declined from 13.3% in 1960 to 7.5% in 2005.  Population change between 1997 and 2007 ranged from -8% in Bulgaria to +18% in Ireland
Expressed in euro, the average hourly labor cost 3  in the  EU27  in 2006 was €20.35.  Sweden  (€32.16) had the highest hourly labor cost in 2006, followed by  Denmark  (€31.98 in 2005),  Luxembourg  (€31.98) and  Belgium  (€31.58).  Bulgaria  (€1.65),   Romania  (€2.68),  Latvia  (€3.41) and  Lithuania  (€4.21) had the lowest.  Within the structure of the labor costs, the highest share of social security costs paid by the employer was found in  Sweden  (30.6%), followed by  Belgium  (30.3%) and  France  (28.6%) and the lowest shares in  Malta  (6.9%),  Denmark  (10.9%),  Slovenia  (13.4%) and  Cyprus  (15.1%).  Labor costs in 2006 varied by one to twenty in the EU27
There were 1.3 billion nights spent in hotels and other collective accommodation establishments by residents in their own countries in the  EU27  in 2006.  Germany  (298 million nights, 22% of the EU27 total) had the highest number, followed by  Italy  (210 million, 16%),  France  (192 million, 14%) and the  United Kingdom  (175 million, 13%).  In addition, there were almost 1 billion nights spent by non-residents in hotels and other collective accommodation in the Member States of the  EU27  in 2006.  Spain  (225 million nights, 24% of the EU27 total) recorded the highest number, followed by  Italy  (160 million, 17%) and  France  (106 million, 11%).  The tourism intensity (total number of nights spent by residents and non-residents per inhabitant) was 4.7 in the  EU27  in 2006. The highest intensity was found in  Cyprus  (18.8),  Malta  (18.3),  Austria  (11.9) and  Spain  (8.7), and the lowest in  Lithuania  and  Romania  (both 0.9),  Poland  (1.3) and  Latvia  (1.4).  Spain, Italy and France had highest numbers of nights spent in hotels by non-residents
Thanks To: Yuri Alakalay – Former Dean, School of Management, Chairman Society for Organizational Excellence Georgi Jadkov – e-learning expert at School of Management; CEO Society for Organizational Excellence Moris Greenberg – Vice-Rector for Quality Management Alexander Pozharliev – Dean School of Management Mike Yanakiev – Former Fulbright Scholar at the Wharton School and USC
New Bulgarian University
New Bulgarian University   (Нов български университет, abbreviated as НБУ,  NBU ) is a private institution of higher education based in  Sofia , the capital of  Bulgaria . It was established on  18 September,   1991  by a group of Bulgarian intellectuals aimed at creating a university to modernise Bulgarian higher education yet preserve its traditions. 2,500 students were welcomed during the first year and a test of general education was introduced in  1995  and established as a uniform standard for the reception of students in  1996 .  As of 2004 , the university has 7,551 current students and 3,201 graduates.   New Bulgarian University
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],School of Management
[object Object],[object Object],[object Object],Management For Organizational Excellence
Library Administration School of  management Students Practitioners Organizational excellence Competition Employers Instructors Alumni Technology Political Environmental Economic Social EU
Design for Master's Program   Management for Organizational Excellence Education Research Consulting Management for Organizational Excellence Systems Thinking Design Center
Structure of Master's Program   Management for Organizational Excellence Education Value Skill acquisition Mindset change Action learning Continuous learning
Thinking Differently ,[object Object],[object Object]
This Is the Visual Thesaurus Depiction of the Word ”Thinking”, Which Is the Fundamental Cognitive Behavior of OE’s As They Try to Manage Complexity .   ,[object Object]
student Process   owner Reflection System thinking Learner centered Team player Self-conscious Mindset  Change
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The EFQM Excellence Model
INNOVATION AND LEARNING KEY PERFORMANCE INDICATORS LEADERSHIP PROCESSES PEOPLE  RESULTS SOCIETY   RESULTS PEOPLE POLICY &  STRATEGY PARTNERSHIPS & RESOURCES ENABLERS RESULTS CUSTOMER RESULTS Skill  Acquisition
Skill  Acquisition
Action  Learning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CONTINUOUS  LEARNING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competence  Standards Achieving results Working with people Change  management Providing direction Using recourses Self management   Communication skills IT Skills
The  role  of  OE  graduates -  leader - strategist ,[object Object],[object Object],[object Object]
developing   the  society  for   OE!
nbu.bg/um excellence-bulgaria.org
Slide 2:  http://en.wikipedia.org/wiki/Image:EU_location_BUL.png Slide 3:  http://www.state.gov/r/pa/ei/bgn/3236.htm Slide 4:  http://en.wikipedia.org/wiki/Image:Vucha_PAN-HDR. jpg Slide 32:  http://www.ibt.co.uk/transformation/efqm2.jpg Slide 34:  http://www.shropshire.gov.uk/ae.nsf Slide 35: Based on  http://www.management-standards.org.uk/ Slide 36:  http://www.flickr.com/photos/kazamatsuri/188655575/ Slide 37:  http://flickr.com/photos/purrr/126597849/ References

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TRAINING MANAGERS

  • 1. Bulgaria in Transition: Training a New Generation of Managers for the Turbulent World John Pourdehnad Dinner Lecture, Tuesday, June 17, 2008 Organizational Dynamics Degree Programs University of Pennsylvania
  • 2. Where is Bulgaria ?
  • 4. Climate Continental--mild summers and cold, snowy winters.
  • 8. Religion (2001) Bulgarian Orthodox 82.6%, Muslim 12.2%, others
  • 9. Ethnic groups (2001): Bulgarian 83.94%, Turkish 9.42% Roma 4.68% other 2% (including Macedonian, Armenian, Tatar, Circassian).
  • 10. Health : Life expectancy (2006)— male 68.68 years; female 76.13 years. Infant mortality rate (2006)--19.85 deaths/1,000 live births.
  • 11. Work force (2005): 3,34 million Agriculture--11%; industry--32.7%; services--32%
  • 12.
  • 13.
  • 14. Bulgaria's economy contracted dramatically after 1989 with the collapse of the COMECON system and the loss of the Soviet market, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew in 1994 for the first time since 1988, by 1.4% and then by 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to shortsighted economic reforms and an unstable and de-capitalized banking system. Under the leadership of former Prime Minister Ivan Kostov (UDF), who came to power in 1997, an ambitious set of reforms were launched, including introduction of a currency board regime , bringing growth and stability to the Bulgarian economy. The currency board contained inflationary pressures and the three-digit inflation in 1997 was cut to only 1% in 1998. Following declines in GDP in both 1996 and 1997, the Bulgarian Government has delivered strong, steady GDP growth in real terms in recent years. Prime Minister Simeon Saxe-Coburg's economic team of young, Western-educated financiers continued to implement measures that helped sustain stable economic growth and curb unemployment. Measures introduced by the government were targeted at reducing corporate and individual taxes , curtailing corruption , and attracting foreign investment . The government also restructured the country's foreign debt, revived the local stock market, and moved ahead with long-delayed privatization of some major state monopolies . As a result of this progress, in October 2002 the European Commission declared Bulgaria had a "Functioning Market Economy." Bulgaria's current government has continued these reforms, and in 2007 the country joined the European Union . According to the World Bank, in 2006 Bulgaria attracted the highest levels of foreign direct investment, as a share of GDP, among Eastern European countries. A growing current-account deficit (estimated to have reached 20% of GDP at the end of 2007) and excessive reliance on foreign capital inflow render the economy vulnerable to external shocks. In early 2007, to attract additional foreign investment, the Bulgarian Government lowered corporate tax rates to 10%, reportedly the lowest rate in Europe. A flat-tax rate of 10% for personal income, in place as of January 1, 2008, will further decrease domestic labor costs and help reduce the share of the "gray" economy . In response to local governments' demand for financial independence in 2006, parliament passed fiscal decentralization of municipalities, granting them authority over collection and administration of some taxes, thus further enhancing local economic stability. Despite Bulgaria's many marked successes, organized crime and corruption remain problems.
  • 15. 75/2008 - 2 June 2008 Europe in Figures – Eurostat Yearbook 2008 The diversity of the EU through statistics
  • 16. The population of the EU27 reached 495 million in 2007, compared with 479 million in 1997, a growth of 3.4%. The Member State with the highest population growth was Ireland (+18.0%), followed by Cyprus (+16.9%), Luxembourg (+14.2%) and Spain (+12.5%). The population fell in eight Member States, with the largest declines in Bulgaria (-7.9%), Latvia (-6.7%) and Lithuania (-5.7%). In 2005, the world population was 6.5 billion, more than double than the 3.0 billion recorded in 1960. The share of the EU27 has, however, declined from 13.3% in 1960 to 7.5% in 2005. Population change between 1997 and 2007 ranged from -8% in Bulgaria to +18% in Ireland
  • 17. Expressed in euro, the average hourly labor cost 3 in the EU27 in 2006 was €20.35. Sweden (€32.16) had the highest hourly labor cost in 2006, followed by Denmark (€31.98 in 2005), Luxembourg (€31.98) and Belgium (€31.58). Bulgaria (€1.65), Romania (€2.68), Latvia (€3.41) and Lithuania (€4.21) had the lowest. Within the structure of the labor costs, the highest share of social security costs paid by the employer was found in Sweden (30.6%), followed by Belgium (30.3%) and France (28.6%) and the lowest shares in Malta (6.9%), Denmark (10.9%), Slovenia (13.4%) and Cyprus (15.1%). Labor costs in 2006 varied by one to twenty in the EU27
  • 18. There were 1.3 billion nights spent in hotels and other collective accommodation establishments by residents in their own countries in the EU27 in 2006. Germany (298 million nights, 22% of the EU27 total) had the highest number, followed by Italy (210 million, 16%), France (192 million, 14%) and the United Kingdom (175 million, 13%). In addition, there were almost 1 billion nights spent by non-residents in hotels and other collective accommodation in the Member States of the EU27 in 2006. Spain (225 million nights, 24% of the EU27 total) recorded the highest number, followed by Italy (160 million, 17%) and France (106 million, 11%). The tourism intensity (total number of nights spent by residents and non-residents per inhabitant) was 4.7 in the EU27 in 2006. The highest intensity was found in Cyprus (18.8), Malta (18.3), Austria (11.9) and Spain (8.7), and the lowest in Lithuania and Romania (both 0.9), Poland (1.3) and Latvia (1.4). Spain, Italy and France had highest numbers of nights spent in hotels by non-residents
  • 19. Thanks To: Yuri Alakalay – Former Dean, School of Management, Chairman Society for Organizational Excellence Georgi Jadkov – e-learning expert at School of Management; CEO Society for Organizational Excellence Moris Greenberg – Vice-Rector for Quality Management Alexander Pozharliev – Dean School of Management Mike Yanakiev – Former Fulbright Scholar at the Wharton School and USC
  • 21. New Bulgarian University (Нов български университет, abbreviated as НБУ, NBU ) is a private institution of higher education based in Sofia , the capital of Bulgaria . It was established on 18 September, 1991 by a group of Bulgarian intellectuals aimed at creating a university to modernise Bulgarian higher education yet preserve its traditions. 2,500 students were welcomed during the first year and a test of general education was introduced in 1995 and established as a uniform standard for the reception of students in 1996 . As of 2004 , the university has 7,551 current students and 3,201 graduates. New Bulgarian University
  • 22.
  • 23.
  • 24. Library Administration School of management Students Practitioners Organizational excellence Competition Employers Instructors Alumni Technology Political Environmental Economic Social EU
  • 25. Design for Master's Program Management for Organizational Excellence Education Research Consulting Management for Organizational Excellence Systems Thinking Design Center
  • 26. Structure of Master's Program Management for Organizational Excellence Education Value Skill acquisition Mindset change Action learning Continuous learning
  • 27.
  • 28.
  • 29. student Process owner Reflection System thinking Learner centered Team player Self-conscious Mindset Change
  • 30.
  • 31. INNOVATION AND LEARNING KEY PERFORMANCE INDICATORS LEADERSHIP PROCESSES PEOPLE RESULTS SOCIETY RESULTS PEOPLE POLICY & STRATEGY PARTNERSHIPS & RESOURCES ENABLERS RESULTS CUSTOMER RESULTS Skill Acquisition
  • 33.
  • 34.
  • 35. Competence Standards Achieving results Working with people Change management Providing direction Using recourses Self management Communication skills IT Skills
  • 36.
  • 37. developing the society for OE!
  • 39. Slide 2: http://en.wikipedia.org/wiki/Image:EU_location_BUL.png Slide 3: http://www.state.gov/r/pa/ei/bgn/3236.htm Slide 4: http://en.wikipedia.org/wiki/Image:Vucha_PAN-HDR. jpg Slide 32: http://www.ibt.co.uk/transformation/efqm2.jpg Slide 34: http://www.shropshire.gov.uk/ae.nsf Slide 35: Based on http://www.management-standards.org.uk/ Slide 36: http://www.flickr.com/photos/kazamatsuri/188655575/ Slide 37: http://flickr.com/photos/purrr/126597849/ References