Success Stories
Kazakhstan

Real Estate Company Builds Outstanding Results

Almaty-based Umex Realty is a leader in commercial and residential real estate leasing in Kazakhstan. They have a good reputation and are well-known by international businesses for offering high quality services. However, when EDP started working with Umex, it was apparent that there were several key business areas where EDP could assist the company in achieving a marked improvement in business performance. The partnership proved so successful that Umex enjoyed a remarkable 300% increase in sales and a 13% margin growth in just six months.

Initially referred to EDP by EBRD Advisory Services in May 2004, Umex began receiving consulting services from EDP’s expert consultants across a number of disciplines. Senior Relationship Management (RM), Gulner Kuvina worked closely with the company managers to develop a series of strategic actions using the Strategic Action Plan (SAP) process and then formulated them into a one year action plan. Three ambitious objectives were identified: by the end of 2004 to increase sales by 100% year on year; to develop and ensure successful implementation of a pilot franchising project in Almaty and Astana; and to improve management, especially financial management, through budgeting and the use of key monitoring ratios (KMR’s).

The main issues inhibiting an increase in sales were a limited commitment to marketing, poor customer service, and a lack of corporate sales techniques. Additionally, they lacked management experience, franchising knowledge, and an effective plan for producing and distributing an upcoming business publication.

Brainstorming sessions facilitated by Ms. Kuvina encouraged effective team work, and her skills resulted in Umex wanting to work with other EDP specialists. To learn how to measure performance using KMR analysis, the company was referred to EDP Financial Specialist Victoria Mamicheva. Ms. Mamicheva provided training on accounting data collection and on key monitoring ratio analysis. In addition EDP Marketing Specialist Alexander Marchenko provided consulting in marketing and assisted the company in developing a marketing plan for their services and magazine, as well as recommending a new advertising policy.

To enhance customer service levels, Peter Gasca, EDP Finance Practice Leader reviewed existing feedback forms, introduced valuable changes and amendments, and developed recommendations on magazine promotion activity. Additionally, Ms. Kuvina cooperated with EDP training partner “Global Education” and arranged a joint training session on Customer Service Facilitation. Ms. Kuvina also advised Umex on corporate sales strategy and emphasized the importance of e-sales through the improvement of the company’s web-site content and design.

To help expand the business, EDP was able to provide consulting on franchising best practices through an American franchising expert, Carl Sherman. Mr. Sherman worked with Umex’s management on franchising systems and provided recommendations on how they could develop a franchise in Kazakhstan.

The results of this consulting package have been staggering. Sales increased by 314% over a six month period, gross margin on these sales went from 24% to 37%, the company’s liquidity increased, accounts receivable turnover decreased from 80 to 37 days, working capital turnover was reduced from 69 to 36 days, and there was a four fold increase in productivity. The company now has a more effective credit policy, its assets are working faster and more effectively, and the entire management team is focused on the same objectives.

“EDP services were obviously very useful in the improvement of my practical managerial skills,” stated A. Mukashev, Umex Realty’s Managing Director. “In several months of our cooperation, I have learned a great deal and now I am proficient in areas of strategic management, marketing and sales, customer service and other practical aspects of business. Trainings and consultations of the EDP specialists gave me not only the knowledge, but also modern management tools and methods. We would also like to mention the good professional qualifications and high quality services rendered by Gulnur Kuvina. We evaluate her work as excellent.”

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