Last spring, Don Calman, CDC, chairman emeritus at New York distributorship PSI Group Inc. (now known as Source4), and his wife Helene spent 25 days in Yerevan, the capital city of Armenia. The country, which declared independence from Russia in 1991, is located in the Caucasus, between Europe and Asia.
Calman, president of DMIA in 1978-79, represented the International Executive Service Corps (IESC), a private-sector version of the Peace Corps that seeks to improve worldwide commerce by matching American volunteers with foreign businesses according to factors such as industry, skill and need. IESC is funded in part by the United States Agency for International Development, which aids the expansion of free business markets and democracy. "The more we can help these emerging countries, the better they can enter the marketplace," Calman says.
Calman's task was to counsel distributorship PrintEx Production Cooperative. Four young men founded the company in 1997, but three left. The remaining founder and president, Artak Mangasaryan, said he didn't know how to target customers. He wanted to develop promotional literature. Calman believed PrintEx's task was much larger: to develop an overall marketing focus. In addition to helping PrintEx, Calman would train salespeople through BusinessLink, a consulting firm that IESC recently founded to foster global business contacts and help Armenian workers improve their skills.
Before leaving the United States, Calman created lesson plans supported by supplies he solicited from DMIA member distributors and manufacturers. He says the worldwide outpouring of materials amazed him. Many association members gave PrintEx permission to reuse their own promotional literature.
Calman looked forward to reliving the beginnings of his own career by helping Mangasaryan launch his. He and his wife also were curious about Armenia's economy and family life. "All that I know is that it's a poor country," Don Calman said before they left. "We want to be in that country to see how it operates."
During his 25-day visit, Calman wrote emails to friends and colleagues about his experiences in the Armenian printing industry and culture. Join him on his journey through Armenia by reading these excerpts from his letters:
Days 1 and 2: First Impressions
The IESC project manager, PrintEx's production manager and Artak Mangasaryan, PrintEx's ambitious, bright, 24-year-old owner, attended my first meeting with PrintEx. We spent three hours discussing the project objectives, the evolution of PSI from printed forms to electronic document management, the differences between American and Armenian business cultures, my approach to developing a sales organization, manufacturing versus distributing, and establishing a training schedule.
When I told them that I wake before 6 a.m. and would prefer to begin early in the morning, they almost fainted. Armenians, I was told, normally begin working at about 10 a.m. and work well into the nighttime. We made a slight compromise and agreed to start at 9:30 a.m.
The next day, IESC representatives took us to the local, monstrous, open-air market. Whatever you want is available, but the throngs are tremendous. Crossing streets to get there is a nerve-wracking experience, because the cars have right of way and anything goes. To make the adventure worse, the streets have terrible potholes that must be dodged.
Days 4 and 5: Focusing on the Customer
PrintEx employees and I had lengthy discussions about price, quality and service, and the benefits of selling two of the three--preferably quality and service. The concept is very unfamiliar to Armenians, but I think they eventually understood and accepted the idea. We then spent considerable time on discussions of what customers expect versus what they receive, and the need to learn about the difference.
The most difficult concepts for them to grasp were "customer No. 1, company No. 2 and employee No. 3," as well as the answer to "Who pays your salary?" Under the old Soviet system, it was "the state No. 1, employee No. 2 (if at all) and customer No. 3," with the state always paying the salary irrespective of the employee's job performance. After that, we discussed SWOT (strengths, weaknesses, opportunities and threats), hiring and advisory groups, and sales service staffing.
After each session, as part of IESC's agreement, I was taken to lunch by the client with the translator to a local restaurant, where our business discussions were supposed to continue. But mostly we discussed personal things, such as family and conditions in Armenia (awful). I keep encouraging him to look down the road rather than at today or tomorrow. It's hopeful, but no more than that.
A good job in Armenia pays $500 to $600 a month. My translator, Khachik Grigoryan, has a Ph.D.
in physics and one of the best jobs available. He has a wife and three children. The man who drives the car for IESC and does odd jobs is in his 40s, has two children and makes $15 per day...and is glad to have the job. Old people and women with children in their arms beg on the streets.
Day 11: Sales Training
Today I talked about the hiring process and testing, staff evaluations, planning, training, where to look for customers, and self-promotional methods and products. With money in such short supply, PrintEx staff members are unable to spend much that doesn't have an immediate return. The idea of investing in salespeople for long-term benefits scares them. Consequently, they hire sales agents who work for many printers at the same time--in effect making the sales agent a broker who determines which of his "employers" gets business. I think that I have lured them away from that approach.
I learned that Khachik, in addition to translating, runs a small publishing company from his home with Armenian-English dictionaries and theological books. His big problems are that he has only two choices of printers to do his work, and they cheat him by printing overrun books and then selling them to some of Khachik's bookstore customers at discount prices. I have requested from DMIA a list of any European and American book printers who can do short runs. People here are very distrustful of one another when it comes to business. The concept of a trade association in which you share knowledge is unknown and frightening.
Day 14: Steady Progress
At PrintEx, we started viewing a wonderful sales training film geared exclusively for printing sales (which was generously donated by DMIA). It's three hours long, but it will take us twice that time. We have to stop every few feet of film to allow Khachik to translate and me to interject supplementary statements. I've also been trying to help Khachik find book printers outside Armenia. There are some in Turkey (not viable with the Armenian-Turkey tension), Iran, Georgia and Poland.
Day 15: Good Times
PrintEx employees and I continued viewing and discussing the film. Today's segment covered time management, which was very well-received, though it was a new concept for them.
For the evening, Helene and I had invited Khachik and his wife Theofana to be our guests for a performance of the Armenian Philharmonic Orchestra at the Opera House. The performance was scheduled to start at 7 p.m., but everyone knows to arrive for a 7:30 p.m. beginning. The best seats in the house cost about 90 cents each.
Afterward at dinner, we learned a great deal about life in Armenia as we put our guests through an ongoing interrogation. The national church is the Armenian Apostolic Church, which is relatively non-invasive in their lives: no position on abortion or death sentences, and a mild one on birth control (natural means only). Strangely to all of us, including Khachik's family, there is an inexplicable ban on third marriages. The family is supreme and strong, with the young still respecting their parents. Drugs and alcoholism are just appearing. Khachik's family says that abuse of spouses and children is not a problem, and when it occurs, is handled by the extended family. Our belief is they're probably sticking their heads in the sand.
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| Don Calman, CDC, chairman emeritus of New York distributorship PSI Group Inc. (now known as Source4), spent 25 days last spring in Armenia as a representative of the International Executive Service Corps. He helped distributorship PrintEx Production Cooperative adjust to capitalism.
RIGHT: Don and Helene Calman (right) enjoy the view south of Yerevan, Armenia, with Armenian translator Khachik Grigoryan (left).
CENTER: The Calmans and Grigoryan visit a 9 th century Armenian church.
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We talked on and on until we suddenly realized it was midnight. Khachik and Theofana insisted on walking us back to our hotel, though muggings and other street crimes are virtually nonexistent. Begging, on the other hand, is common. There is one particular lady whom we have "adopted" and who receives a small amount each time we pass her. Old people are really suffering during the transition from the Soviet system.
Day 18: Putting Lessons into Practice
Today's session included role-playing. I was the tough buyer, and each of my students in turn played a salesperson trying to accomplish an assigned task: cold calling, returning a requested price and giving alternate suggestions, making an appointment, introducing the company at a first appointment, etc. We had fun and did much laughing despite--or because?--everything slowed down for translations.
My wife Helene and I went out for dinner at a restaurant we had tried to find a few nights ago with no luck. It was listed in a guidebook as being at "about" 40 Tumanian St. Only 1 in 15 buildings has a number on it. There is a delightful innocence to the way some things are done here, if you don't take them or yourself too seriously.
Day 19: The Secret
I found the secret to crossing streets in Yerevan. First, understand that automobiles have the right of way over pedestrians. Traffic lights are treated as multiple choice. Rarely can you make it across a street because they are so wide. Now for the secret: You get to a crossing and carefully look in all directions, two or three times, then you wait for three old ladies to start crossing and you get in the middle of them. It's not that the cars slow down for the old ladies; it's simply that they know how to play the game. I was told by friends that they thought carrying a cane also helped a bit, preferably one of those long, white ones.
Day 22: Reviewing a Job Well Done
This morning I completed my training with PrintEx: a review of Artak's 3-year plan and 1-year action plan, given to me in a verbal overview. (I have given up expecting note-taking or written documentation. From their early schooling through university education, Armenians learn to write up everything after the lectures/discussions, not during.) We then went through a general review and a look into the future.
Khachik picked us up at the hotel and then picked up Christina Voskorchyan, my project leader, and her boyfriend, Bagrat. At Khachik's, Helene and I were not permitted to help in any way, but Christina and Theofana busied themselves in the kitchen while the rest of us sat around and talked. Only Armenian food was served, in our honor. The food was delicious and overwhelmingly abundant and varied. Wine, soda, juices and bottled bubbly water were on the table. Each time we thought we were finished, another dish arrived: beet salad, cabbage salad, carrot salad, green salad, greens and feta cheese, olives, and much lavash and other bread. Then came a delicious yogurt soup followed by stuffed grape leaves, dried beef slices and Lake Sevan fish. After that, fresh oranges and grapes, plus chocolate-covered wafers. Tea and coffee finished the meal. Throughout, there were innumerable toasts...to friendship, country, individuals and any other excuse for a toast. It was all done in good spirit amid much conversation and laughing. A wonderful time was had by all.
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Day 23: Exploring Armenia
Khachik picked us up at noon, and we walked to the Manuscript Museum, where we had a wonderful English-speaking guide who took us around the most fabulous collection of ancient Armenian documents. What she didn't cover, Khachik filled in. Among other things (biophysicist, publisher and translator), he writes and translates theological subjects.
Later, Artak and his production manager took us to Garni, about an hour drive from Yerevan. Garni is the site of an early first century pagan temple of Greek influence that sits at the top of a mountain overlooking a very deep and broad valley. Its majestic views were awe-inspiring.
We then traveled to Geghard, and what we saw was absolutely unimaginable--a 2-story church and burial ground carved into a solid rock mountain. The monks carved a hole into the top of the rock and widened it as they carved down, forming the various rooms of the church. Then they carved columns, arches, domes and decoration. It's unbelievable that they could do it. While we were there, the 3 p.m. service had begun, and we decided to stay and observe. It was simple, mainly in song, and beautiful to behold.
Day 25: A Bittersweet Good-bye
For dinner, we went to a teahouse with Theofana and Khachik, Artak, his production manager (also named Artak), Christina and Bagrat. It was a bittersweet event. These people were overly generous to us. In addition to presenting us with many pictures they had taken during our travels together, Khachik's family gave us a beautiful, illustrated book of manuscripts we had seen at the Manuscript Museum. Artak gave us a carved Armenian cross and a 5-pound box of dried fruits made by his mother (we had enjoyed and praised a sample earlier in our stay). During dinner, Helene mentioned we had enjoyed the chanting during a church service we witnessed. A few minutes later, we noticed Bagrat and Artak were no longer at the table. They returned about 15 minutes later with another gift: two cassettes of the chants we had admired. They had run out to purchase them.
All in all, it was a very touching and bittersweet get-together. They all walked us back to the hotel. We parted with much kissing and handshaking.
Epilogue
"I knew it was a slow, weak economy, but until you see the place, it's hard to believe," Don Calman, CDC, says of Armenia, where he and his wife Helene spent 25 days last spring. Calman, chairman emeritus at New York distributorship PSI Group Inc. (now known as Source4), describes the nation's Soviet-style houses as "concrete boxes" crumbling with exposed wires and unreliable electricity. "The country is in really, really bad shape," he says. "They're all highly educated and are a good working force. The problem is there's nothing to be made, because all the borders are closed. When I was over there, I saw all these empty factories." The country's obstacle-ridden road to capitalism inspires Calman to count his blessings, he says.
Even so, Calman believes he helped distributorship PrintEx Production Cooperative make progress. After his trip, PrintEx abandoned the practice of hiring independent sales agents. It added two sales staff members, who, upon Calman's recommendation, received regular salaries. Calman also emphasized marketing PrintEx's distributor services over its manufacturing capability. "They had a little RISO printer banging away in the corner--and that's all they had," Calman explains. He says that in Armenia's deflated economy, intangibles such as service are a tough sell.
Calman says he keeps in touch with Artak Mangasaryan, PrintEx's president. "Recently, Artak apologized for a lengthy interval since his earlier email," he says. "PrintEx had brought in so many new accounts and orders that he was working all the time, and he has added two new employees. It's very satisfying to think that I contributed to that."
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Rita Tiefert is an assistant editor at Print Solutions.
Email her your comments at rtiefert@PSDA.org.
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