An interview held with Khachat Markhiyeva, CEO of METRO Kazakhstan
Taking off in Turbulence Conditions: Company Development and how METRO Support employees in building their careers. Could you please tell us a little bit about yourself, your career path, and your vision? This month marks exactly 15 years with METRO. I started as a coordinator in the buying depar...
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Taking off in Turbulence Conditions: Company Development and how METRO Support employees in building their careers.
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Could you please tell us a little bit about yourself, your career path, and your vision?
This month marks exactly 15 years with METRO. I started as a coordinator in the buying department, spending my first six years developing my career in that area. In 2015, I joined the Board of the company and took on various responsibilities, including HR at one point. Essentially, I was preparing myself to become a CEO. I remember when I first expressed this ambition to the corporate team, they thought it was impossible for a local woman in Kazakhstan to become CEO. But I believe anything is possible if you put enough energy into it. Before METRO, I had my own business, but my parents were worried and wanted me to have a stable corporate job. They succeeded, and although it’s never been a typical 9-to-6 job, it has been a great journey. Looking back, I’m grateful they encouraged me to move from entrepreneurship to a large international company.
What are your main priorities when managing such a large team?
Currently, we have over 800 employees across the country, operating in 10 locations. When managing large teams, it’s crucial to see the people behind the numbers. Keeping in touch with those who are doing the real work on the ground makes everything possible. In selecting the management team, it’s vital that they share our values and help propagate our culture. The most important thing is to not tolerate anything that doesn’t fit with our cultural values. Expertise can be learned, but values and culture are non-negotiable.
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How does METRO support employees in their career development?
Over the years, METRO’s main priority has been building strong teams and developing local talent. At METRO, everyone is considered a talent because we recognize that people can excel in various fields. It’s quite common for someone to start in HR payroll and eventually lead the BI-analytical department. We encourage employees to voice their career aspirations and support them in achieving their goals. What sets METRO apart is our openness to feedback and dialogue. When we create individual development plans, we envision where employees want to be and what steps they need to take to get there. The company then provides the necessary support.
Could you share with us some of the main milestones in METRO’s journey here?
It has indeed been quite a journey. Those who have been in Kazakhstan for a long time might remember that our initial entry into the market wasn’t very successful. We made a significant mistake by trying to replicate the success we had in the Russian market here in Kazakhstan without fully understanding the local differences. This expensive learning curve lasted about six years before we started to see steady growth and development towards becoming a leader in the B2B sector.
2015 was a pivotal year for us, as we finally understood our role and mission in the market. We began to focus on being a partner and supporter for small and medium-sized enterprises, including small retail shops and the HoReCa sector. We conducted numerous educational programs, provided advice, and introduced innovations from other markets, helping our clients build their menus and assortments. Over time, we became the preferred partner for many customers who have been with us for the past 15 years. Today, I can confidently say that we are the number one modern wholesale B2B player in the market.
Of course, our journey wasn’t without its challenges. The most recent was a global cyberattack that occurred just one week after I became CEO. Everything was down, and we had to manage the company manually for about six months, relying heavily on Excel-based operations. It was a challenging time, but the way our team coped with it was truly remarkable. Despite facing devaluations, COVID-19, and the cyber attack, each challenge made us stronger. We learned from these experiences and became better as a team. These challenges laid a strong foundation that now helps us easily overcome the latest global issues.
In recent years, companies and the world at large have experienced significant changes, both locally and globally. For your business, the supply chain is likely one of the key factors in your success. How do you manage these challenges?
Managing the supply chain has indeed been a challenge. We bring in around 150 trucks every month from abroad. Two years ago, we realized it would be difficult to maintain our usual lead times and service levels for our customers. However, our team was able to implement alternative methods for bringing in goods, and we maintained close contact with the Ministry of Transport. Their initiatives helped us sustain our operations by allowing our trucks to pass through different routes.
Supply chain issues are, and will continue to be, a significant challenge for Kazakhstan. It’s not just about the quality of the roads but also the administrative burdens and our dependence on external countries for even basic food items. Currently, we are working with EUROBAK and the Ministry to create alternative routes, which we believe will help minimize risks for Kazakhstan and large companies like ours.
Another direction we are focusing on is the development of local producers. This is more challenging because Kazakhstan is a relatively small country with a spread-out population, making it difficult to achieve economies of scale. Despite this, I see positive dynamics. Localization will be my focus for the next three years, and we believe there are ways to improve the situation significantly.
What are your forecasts for the wholesale market, and how do you envision its future development?
The wholesale market in Kazakhstan is becoming more organized and consolidated, with bigger players emerging. Smaller companies find it challenging to survive due to high costs. In the next three to five years, I believe the wholesale market will become more organized, legalized, and controlled. However, there is a risk that smaller companies might disappear. If these companies focus on quality distribution and adhere to the rules, there will still be space for them in the market. Kazakhstan has a unique ability to balance the power of big retailers with small independent shops, and maintaining this balance will ensure that the wholesale market continues to grow and be profitable.
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I’ve observed the development of Kazakhstan over the years, and it seems promising. Can you share your thoughts on this trend?
It’s encouraging to see younger individuals becoming entrepreneurs, which is important for the country’s development. While we, as employers, find it challenging to attract people to corporate roles, it’s vital that people see opportunities to grow here rather than leaving. The trend of leaving the country is less prominent now. There are companies, including ours, where multiple generations work. For example, we had a mother who worked with us and retired, and now her daughter is part of our company, inspired by her mother’s stories.
Overall, Kazakhstan is becoming a great place for our people to grow and for international players to invest and develop. The market is receptive to innovations, and I believe the next five years will be promising, with many opportunities for growth and development.
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