Team Leader - Tim O'Neill
Project Coordinator - Alla Chernyak
The Enterprise Restructuring Facility Project (ERF) was designed by European Union to assist commercially viable private or privatising Ukrainian enterprises to enhance their performance through improved competitiveness, modern management techniques and the inputs of expatriate and local consultants. The Project, which is managed by BearingPoint, one of the world’s largest consulting companies, was initiated in January 2003. Work will focus on improving the performance of partner enterprises, increasing enterprise value, accelerating economic growth and strengthening the private sector in Ukraine.
In July 2003 the Enterprise Restructuring Facility (ERF) signed contracts with 6 consortia of Ukrainian consulting firms to undertake in depth diagnostic analyses of 22 private Ukrainian enterprises. The consulting companies and their partners employed more than 100 individual consultants to complete this work under the direction of BearingPoint, one of the world’s largest consulting companies. This work was provided free of charge to the enterprises.
Following the successful completion of the diagnostics, ERF, the consulting companies and all 22 enterprises have agreed to implement sub-projects identified in the diagnostic phase. This will result in real improvement in the performance of supported enterprises, measurable through objective indicators such as enhanced productivity, improved cash flow, etc.
For the forthcoming implementation phase, 80% of the Ukrainian consultants’ fees will be paid from European Union funding. The remaining 20% will be paid by the enterprises themselves. The continuing participation of all 22 enterprises on a partial payment basis is a strong indicator of the success of the project to date and demonstrates the enterprise management’s commitment to fostering real change.
The project also provides free training to consultants, enterprise managers, civil servants, academics, and university students. This training covers the business principles and practises essential to the successful operation and growth of enterprises in a market oriented economy. Training is being presented in 7 cities around the country. The training sessions for the first three topics – marketing, strategy and management accounting – were completed last year and were very well received, with nearly 2200 person-training days being delivered – almost twice the initial project target. In the next phase of training, ERF’s Ukrainian consulting partners will present 6 case-study training sessions, each of which will be based off an individual consulting partner’s direct experience working with ERF enterprises. Anyone interested in participating in the training is invited to apply online at the ERF website.
The ERF project is unique, in that it brings together Ukrainian consulting companies with Ukrainian enterprises to promote the efficiency and growth of local businesses.