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COMPANY MANAGEMENT SYSTEM


UC RUSAL is making qualitative changes in its operational and management practices. This change in how we manage raises the question of how we delegate authority. The Executive Committee of our Company adopts collective resolutions. Our management team aspires to a Toyota principle: 'Resolutions can be discussed for as long as is required. Decision-making must involve all and any interested parties. Once a resolution is made, it must be quickly implemented'.

The Company has established area committees. The members of the Executive Board are the backbone of every corporate committee. In some committees, middle-level managers stand in for the executive board members. The divisional structure of RUSAL is based on the same principle. The directors of divisions are delegated authorities within a certain area of the business. In turn, they delegate authority downward, to mid-tier managers. Most in the Company believe that this is the only way to solve tasks effectively, thoroughly and on time.

Increasing the involvement of middle-level managers is a potential area for further growth and development. Some of this entails hard at times routine work. However, it is evident that it will be impossible to achieve the strategic goals of RUSAL without this work.

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