Evgeny Efanov: "I can't imagine the collapse of the economy"

Contents:

• About changes in the design market
• About changes in the company
• About employees
• Advice to designers

We discussed key solutions that can help in times of crisis, as well as development prospects and hidden opportunities in this field, with design experts. In this issue, Evgeny Efanov, Managing Partner of aic Studio, shares his opinion.

The Managing Partner of aic Studio is responsible for strategic leadership and coordination of all processes within the company. He plays a key role in the formation and implementation of business strategies, ensuring effective interaction between teams and clients. An expert in project management, he strives to optimize work processes and improve the quality of services provided. Under his leadership, the aic studio focuses on innovative solutions and a creative approach to each project, which allows it to achieve high results and satisfy client needs.

On changes in the design market

Design is an important component of the modern market and reacts to crises similarly to other sectors. In an unstable environment, designers adapt their approaches and solutions, taking into account changes in consumer preferences and the economic situation. This allows them to remain relevant and competitive, as well as find new opportunities for development.

The service business is characterized by quarterly planning. In the current quarter, many companies may experience a decline in performance. However, we will not be able to assess the final results until the fall.

The current changes in the market open up new prospects, but it is difficult to predict their impact. In my opinion, the volume of traditional purchases may decrease by half, but at the same time, we will see an increase in the quality of purchases in key industries. These are the areas that will be our focus.

At this point, I find it difficult to imagine a scenario of economic collapse, and I leave such thoughts to the experts in this field.

The top hundred businesses by market capitalization form the foundation of the economy, guaranteeing their continued development and operation. These companies will maintain existing systems, which is critical for market stability. In the medium term, they will successfully resolve logistical issues, allowing for the resumption of projects aimed at optimizing all stages of the supply chain. In this context, our services will become essential for many business systems and platforms. In the long term, we expect the launch of new products, especially in niches that have become vacant for reasons beyond demand. The need for these segments will remain, creating additional opportunities for growth and innovation.

Government procurement will begin to function more efficiently, but this will take time. The workload on the system has increased exponentially, yet society expects miraculous results from it. The personnel shortage in this area is a serious problem, and with the current flood of initiatives, managing these challenges is becoming extremely difficult. It is important to support government agencies by providing them with the necessary assistance and resources to successfully perform their functions.

Among the most promising sectors for design are retail, financial technology, manufacturing, agribusiness, information technology, telecommunications, and the technology sector of public administration. These areas continue to evolve and require innovative design solutions to improve user experience and optimize processes.

Our service market requires constant activity in project sales, participation in tenders, and the rational use of resources. An important aspect is establishing communication with clients and partners, as well as informing them about their activities. In addition, it is necessary to attract qualified personnel. In a crisis, such actions are especially relevant to ensuring business growth and sustainability.

About changes in the company

Our internal measures to optimize costs are quite simple. We are cutting unnecessary costs, reducing expenses on traditional marketing channels, suspending investment projects, and finding alternative payment methods for international services. In the current environment, it's unlikely anyone would do otherwise.

Currently, it's crucial to optimize internal business processes, minimize the time it takes to prepare proposals, and accelerate their implementation. Speed ​​is key to successfully adapting to market changes. Effective time and resource management will allow the company not only to remain competitive but also to quickly respond to new challenges.

Our clients are striving to minimize financial risks: contract signings are postponed, projects at the tender or sales stage are frozen, and initiatives are temporarily suspended. The focus is on ongoing projects and those related to key revenue channels. Of course, there is a slight change in financial flows, which requires optimization and reduction of project costs. However, we are relying on the experience gained at the beginning of the pandemic: our mechanisms are already well-established, and this allows the business to function without significant losses.

It's important not to get too caught up in predictions. Analyzing every possible scenario and reacting to every slightest signal is ineffective. It's more effective to focus on current tasks and real situations to make informed decisions based on facts, not hypothetical assumptions.

According to most sports psychologists, it takes 21 to 25 days to form a habit. A similar dynamic is observed during the crisis: incoming inquiries dropped significantly in the first three weeks, and demand began to gradually recover in the fourth week. However, the deal cycle for the next 3-4 months appears to have lengthened significantly and may not return to its previous timeframe.

Decision-making is a complex process. While previously a single round of approval and the participation of the head of the department was sufficient to complete it, now at least a vice president and several rounds of approval are required. We don't perceive this as a negative, as we are also in no hurry to make payments to our suppliers, which is normal practice.

In terms of software, the Adobe suite is practically never used. The main risks for us are Figma and Google. We have already taken steps to minimize potential issues: Yandex support is provided for Google, and for Figma, the use of native software such as Sketch, which will allow us to export our developments. We will resolve any emerging issues as they arise, and at the moment, I do not see any need to anticipate all possible areas in advance.

About Employees

Serious risks associated with people include aspects of psychology, culture, politics, and stress. These factors can have a significant impact on individual and group behavior, as well as on decision-making in various areas of life. Psychological characteristics, such as stress levels and emotional state, can be critical for productivity and teamwork. Cultural differences can lead to misunderstandings and conflicts, which further increase risks. Political circumstances, in turn, can impact social relationships and trust levels between people, creating additional challenges. Understanding these aspects is key to effective risk management in any organization.

If an employee decides to relocate to another country, we can provide guidance and advice and fulfill our obligations to them. However, we will not be able to provide significant assistance in this process. Under strict banking restrictions, all responsibility for financial logistics will fall on the employees themselves. Currently, fewer than ten people have left, and some have already returned. We do not plan to relocate the company, as this would lead to the creation of an entirely new business, and adapting to a new mentality requires time and effort.

After several weeks of pause, we have managed to implement basic mechanisms for dealing with the general tension. In our digests, we provide information on the current state of affairs in the company, and at monthly QA sessions, I share information on the company's progress and am ready to answer any questions employees may have.

We've stepped up communication between HR and each employee, which has become the foundation for building a more cohesive team. This has resulted in Friday meetings, board games, poker, demo days, informal get-togethers, and shared breakfasts. Our corporate culture already included these elements before February 24th, but we needed to fine-tune it to optimally distribute energy. Understanding that complex mechanisms can lead to mixed results has become a key factor in our approach. We strive to create a comfortable atmosphere for communication and interaction, which contributes to increased team spirit and improved work processes.

Recognizing the onset of a crisis is an important step in overcoming it. This allows us to capture the starting point and begin moving forward together. Rather than artificially motivating people, it's important to create conditions for understanding the situation and working together to change it. Effectively overcoming a crisis requires an honest approach and team support.

Advice for designers

The majority of people in Russia are still working, and giving advice in this situation is not easy. It is important to remember that responsibility should be focused on oneself, one's family, and one's own business. When a person takes responsibility in these areas, they are able to maintain a clear mind and a cool head. This allows them to better cope with challenges and make informed decisions in a situation of uncertainty.

A key aspect to focus on is developing one's own applied skills. It is important to constantly improve, demonstrate results, and not rest on their laurels. If you feel like there is too much work, it is worth taking on additional tasks. This will help not only to increase the level of professionalism, but also to improve personal effectiveness.