The power of freedom

I started planning my actions according to the books I read: the world of books and the real world started to merge, just like in "The Master and Margarita." The more I read, the more I got amazed by the effect that reading had on my life and work. For example, after reading Claudio Fernández-Aráoz's book "The Talent Masters: How Great Leaders Make Great Teams" I organized regular meetings with top managers.

After finishing reading a book, I jot down what I need to do. Sometimes I record a voice message with my thoughts, and other times I simply write them down in a notebook. I don’t write anything in the margins of the books. Nowadays, I tend to listen to more audiobooks. I used to read texts, but when audiobooks appeared, I switched to them because, being an athlete I prefer to listen to them while walking or jogging. It’s effective, and my brain absorbs information better when I set the playback speed to 1.5 or 1.7 – it sounds like a bedtime story from my mum. If I have that opportunity, why not take advantage of it? I "devour" books one after another.

My mother grew up in a family of teachers and writers. Their home was always filled with books, and there was a special place for book subscription. As soon as a new book or novel was published, it would immediately appear in their home. In Urengoy, my mother also subscribed to many books, and our library was constantly growing. She could read a three-hundred-page book in just one night. Unlike her, I developed my love for reading when I was much older than a child. And one of the reasons I read many books is that they significantly improve my arguments. Books let me be competitive in discussions and easily provide evidence.

Reading books discovers various systems and connections, which helps me articulate my ideas. I realized this when I reached a certain level of literacy and began to notice that I could come up with arguments from different fields and justify my claims. This is part of my role as a leader.

Moreover, I always pay attention to how a person argues for their point of view. Sometimes, I deliberately provoke people into a debate to see how they defend their position. Even if I agree with them, I express an opposing opinion to test their argumentation.

I assess whether a person understands who they are speaking with. Sometimes people present arguments as if they were in elementary school. I always evaluate how well a person is aware of their interlocutor and the quality of their argumentation. The process of discussion and persuading someone of something is a whole world, and I could write a book about it. Most people don’t know how to argue effectively. They don’t understand that a problem can’t be solved at the same level it appeared; you need to rise to a higher level. If an interlocutor can provide that depth of argumentation, I would consider them as a potential employee.

For example, if we discuss moving to a new office, I’ll ask, "Why do we need this? What are we going to gain?" Many people would answer like, "We’ll increase revenue" and describe straightforward processes, but realizing that the other person truly doesn't understand is an art. When I see someone addressing exactly what will help the person realize why they are wrong, I mentally give them the highest mark.

If we debate about moving to a new office, instead of presenting obvious arguments, one could say: "Market share is critically important for us, and 25% of our partners and employees are not willing to work far from home. We could lose that slice of the pie." Such arguments demonstrate a deep understanding of the issue and strategic thinking. It could be also mentioned that opening a new office increases internal competition. There will be competitive mechanisms, processes become cheaper, and this gives us advantages. Here’s another example of effective reasoning in favor of the new office: "Don’t you agree that we need to learn how to work remotely. As a system, we become better when we strive to operate not on the principle of 'I see you and control you,' but on the principle of trust and independence."

Here are three levels of arguments: from basic to more profound, which truly resonates. It's essential for any manager to understand how all processes of argumentation work. There is immense power embedded in the system of argumentation. I evaluate people based on their ability to put forward their point of view.

I have a high success rate when it comes to persuasion. It requires intense mental effort. I need to quickly understand what the person needs, how they think, how they assess situations, their willingness to take risks, and why they might be resistant. Hundreds of questions race through my mind. Convincing someone who disagrees with you is the most energy-intensive task.

It's important to consider the mindset of the person you're dealing with. If you start a confrontation, you'll never reach an agreement. You need to be able to see things from your opponent's perspective and say, "Yes, but…" – and that takes a lot of effort. This approach to management, rather than simply enforcing rules, creates a unique environment within the company and fosters different relationships.

Sometimes, there’s a strong temptation to make a drastic decision, but that impulse is often misguided. I get it – I feel that way sometimes too. I remember one director at a meeting saying, “Sometimes you just want to slam your fist on the table and say, ‘Just get it done!’” That really captures the mindset of that type of manager.

There are also side effects to a gentle management style. Many people, for some reason, perceive kindness and openness as weaknesses. Some may even take advantage of this. In Russian mentality trust is often seen as a vulnerability. I see this in management. If people start to exploit my kindness and genuine desire to help, distorting my intentions, I can respond sharply and put them in their place. There’s a fine line that needs to be considered. In rare cases – less than 0.1% of situations – I might respond harshly if someone behaves inappropriately. For example, if someone in a meeting says to another, “Be quiet, can’t you see I’m talking?!” I might ask that person to leave the meeting.

Why does this happen? Because, as a result of my flexible management style, people from different cultures sometimes get the impression that it's okay to be harsh. There are two dimensions to consider: managerial flexibility and human softness. I believe that human softness is important, but it must have its limits.

As I grow older, I increasingly realize that responsibility means being willing to sacrifice a lot for the company. I've even started writing about this in my first book. I must admit, I've become a bit like Scrooge McDuck. I've come to understand that my company needs money. Even though we sometimes made over 100 million rubles a month, I found it hard to spend even 50,000. I kept thinking about potential tax risks and other unexpected expenses. Imagine earning so much money but being afraid to spend some of it because you might need it in the future. I counted every thousand, even with such high earnings. And by the way, all my concerns always turned out to be justified, even the most pessimistic ones.

Usually, coincidences happen over short periods of time. Perhaps I was internally prepared for them, which is why I noticed and followed them. In a person's life, there are usually only two or three significant random events. This could be meeting someone special or encountering important circumstances. Everything else tends to follow a more predictable path. Therefore, we should approach coincidences with caution, but also recognize the opportunities they can bring.

I want to tell you a story. I was flying to Kostroma from Gorno-Altaisk to make a speech at a forum. We took off in the morning, and guess what? I have a weak spot – I don’t handle flights well. I spent all four hours in the lavatory, throwing up non-stop. I handed the flight attendant 5000 rubles and asked her not to let anyone in because I couldn’t come out and explain why the bathroom was out of order for so long. She assured me everything would be fine. I was severely dehydrated, having drunk seven liters of water during the flight. When I arrived, I had to speak at 10 a.m. I hadn’t slept all night and felt terrible. My deputy saw me three hours after landing and suggested canceling my speech, which was scheduled to start in just an hour, but I turned down his offer and went on to speak anyway.

No one noticed anything, but about ten minutes before the end of the workday, I felt like I was about to pass out. Nevertheless, I managed to get through all my scheduled meetings at the office, and in the evening, I even played in a football match for the local team. And I played well! But when I got home, I just collapsed. I realized that pushing myself to the limit can be pretty dangerous.

When I was heading home, I realized that I would never do that again. If I feel tired, it’s better to cancel my plans. Since then, if I haven’t got enough sleep, I go to bed to recharge before tackling my tasks. Why am I sharing this? To show that everyone is capable of transformation; we all have the potential and catalyst for change within us.

Chapter 3. About a Good Person and their Inner Strength

What does it mean to be a good person and have real inner strength? I touched on this in the introduction, but this question deserves a more detailed exploration. In my opinion, a good person is someone who, when faced with the choice between money and their values, will always choose the latter. This is important for life and critically essential for business – many aspiring entrepreneurs encounter such dilemmas. When it comes to choosing between personal principles and financial gain, principles should win.

I have faced this choice myself more than once. Let me give you a specific example related to motivational management within a company. When we started in the 2000s, many believed that salary was the only thing an employee should receive from an employer. However, from day one, I adhered to a different principle: every employee is a partner with whom we need to honestly negotiate the sharing of income. The fact that we build a partnership with our employees doesn’t mean they bear the same risks as the leadership. For instance, when employees made mistakes that led to significant losses, we never shifted the responsibility onto them. We always took on all the losses ourselves. This is our formula: the entrepreneur takes responsibility, while employees participate in the distribution of income.

There have been times when employees earned more than I did, and I've always considered that perfectly normal. My main principle is to create value for others. My job is to build a community where everyone finds it interesting and beneficial to work. Only after I make sure the interests of my employees are taken care of can I think about my own well-being.

My acquaintances often said, "Ildar, what are you doing? You're investing all your income back into the business, while your employees drive expensive cars and earn high salaries." I would respond, "That's how we agreed to operate." Our model is built on this principle. The growth of the system is impossible without strong individuals who can realize their potential. They invest in themselves and their development, striving to improve. For that, they need income. One thing has always been important to me: how much my employees earn. When I saw the rising incomes of my staff in the accounting reports, it made me happy.

Moreover, I have always been happy to see the profits of our partner realtors, senior partners, and franchisees grow. There's a special kind of satisfaction in knowing that we are all working together towards a common goal. Our system allowed for income growth, which signified the company's development and served as a tangible measure of our efforts – a visible result. It meant that the knowledge and skills of our employees were being effectively utilized and that the company was truly investing in their development. For me, this has always been a key indicator of success.

Another trait of a good person, and for me, it's a fundamental issue, is keeping agreements. For example, in 2008, we had no money at all. I remember going to the bank and taking out a loan at 25% interest to continue paying salaries at the level we had agreed upon for a certain period. Only after fulfilling my obligations did I have a serious conversation with my employees, where I explained that I had to temporarily reduce their salaries by 15–20%. Even though I had no money at that time, I didn't let my people down. As a business leader, I took on all the risks. This principle was crucial for me then and remains an important value for the company to this day.

Honesty is also vital in business relationships. You can’t build a business without it. I can't stand lies, and I always speak the truth directly to people's faces. Those who start working with me are often surprised by my straightforwardness, but over time they realize that it's much better to say what you mean rather than think one thing and say another. I always advocate for honesty in both personal and professional relationships, which sometimes leads to serious conversations with my deputies. I express my thoughts respectfully but directly, and I expect the same from others. There was an incident with our top realtor when we caught him cheating. That realtor was responsible for about 10% of our total revenue. The situation that unfolded when we started discussing measures to address this issue became a serious lesson for me. In the early 2000s, our company "Etagi" had four co-founders, so we discussed this matter together. My partners insisted that we should not terminate our relationship with the realtor caught in dishonest dealings. We were already facing financial difficulties and there was uncertainty about whether we had enough funds to keep the company afloat during such a challenging time without going bankrupt. Besides, we were concerned that he might leave for a competitor.

At that point, I urged my colleagues to think about the long-term implications: "What will we achieve with this decision? What message are we sending to our partners by condoning the dishonest actions of their colleague?" I was convinced that in the future, we would lose much more because of this. We were building a large system for the long haul, and we couldn't turn a blind eye to this misconduct. Personally, I made the decision to build a system with the future in mind, rather than living day by day. Long-term thinking is one of my principles, as I've mentioned before. At that moment, I managed to persuade my colleagues to take decisive action. We ended our partnership with the realtor who had violated the rules. My partners understood that such behavior was unacceptable in our system, and as a result, our revenue doubled the following year because all the shady schemes disappeared and turned into our profit.

In the first couple of years of managing our company, there were four of us involved. My mother and I were equal partners with Galina Vasilievna Maximova and Andrey Valeryevich Maximov. However, by 2003, my vote became the deciding one. From that point on, I was fully in charge of the company and made all the strategic decisions. For the first three years after the company's founding, my mother played the role of leader and carried the entire company on her shoulders. I was only 23 at the time and was just beginning to step into the world of senior management.

At that moment, I realized how important it is for a businessman to have clear principles and a strong inner core. When a leader faces a complex management decision filled with contradictions, it's crucial to be confident that the choice will ultimately be the right one. But how can you determine that, especially when you’re deeply involved in the situation? It can be quite challenging to take an objective view. From my management experience: the more fear arises within, the closer you are to the right decision. The human brain is wired in such a way that neurons send signals about impending danger, and the closer that danger gets, the more strongly fear affects us. However, fear doesn't always indicate that the decision is right. As the importance of a decision increases, fear can also grow. Yet, fear can also arise when you're moving away from the right choice. It manifests in both scenarios: when you're approaching an important decision, it causes anxiety, and when you're distancing yourself from that decision, the potential consequences of inaction can be frightening. I don't like to make decisions when I'm feeling fearful. When you feel fear, it often means you lack sufficient information, have conducted poor analysis, or simply lack experience. For me, the ideal point for making a decision lies between these two types of fear.

The case with the unscrupulous realtor was very telling: everyone was afraid of losing money right away, but few considered that if they ignored this incident, it could lead to a toxic culture within the company in a few years. I always focus on the future, and I'm less concerned about immediate financial losses than I am about long-term benefits.

Chapter 4. About the DNA of a Company

The DNA of a company is established at the very early stages of its existence and becomes woven into its management system, relationships, laws, and resource distribution. Even if your business has only two employees, that DNA is right there. Every company reflects the personality of its leader. This effect has its own rules and areas where it manifests most clearly.

Recruitment

The head of a company has a significant impact on the team: they hire employees – their inner circle – who then shape the rest of the team. It all starts with selecting the right people; this is how the company's DNA is formed. Ultimately, the entire structure is built on the principle of similarity. If a leader lacks a strong internal foundation, they will only attract people who are similar to them. It’s crucial to understand this, as many believe that money can buy any professional. But that's not the case. In fact, the importance of this factor cannot be overstated. What distinguishes the world's best universities from average ones? It's incredibly difficult to gain admission; they set a very high standard from the beginning, and that's what makes them so valuable! They concentrate talented people that enhance one another. Imagine what would happen to these prestigious universities if they started accepting students based on connections or without entrance exams, simply relying on emotional assessments?

A new employee in a company senses its DNA; they may not be consciously aware of it, but they pick up on it at a deeper, intuitive level. This phenomenon occurs in every organization, making it crucial to be able to feel and manage changes effectively. The creation of a company's DNA is the responsibility of its leadership.

The psychology of relationships

Respectful communication is the foundation of any successful organization. I always strive to maintain a culture of respectful relationships, engage in clear dialogue, and avoid putting pressure on people. I never allow grievances or disagreements to escalate into conflicts. I always resolve disputes peacefully and constructively, focusing on explanations rather than arguments. Even when I face insults or criticism, I stay calm and focused, concentrating on building connections rather than tearing them down. I strongly believe that people are meant for creativity and creation. This is the essence of life and work. Creating, not destroying, is what truly matters for any entrepreneur seeking success.

My management style involves defining the company's development directions in collaboration with my colleagues. This is the approach I strive to implement within our organization.

Many people who join us notice that we are always friendly. I am an open person myself and believe that we should communicate with others as if they were our parents or someone we respect and value. Our main strength lies in our respectful attitude towards people. Effective communication fosters loyalty to the system and creates the principle of openness. I realize that while talking to employees, I am partly shaping the company's culture. There are moments when I feel like saying something harsh, but I understand the importance of being the best version of myself, even when it's tough.

Trust is the core value of our company. When employees begin to trust management, they realize that it’s a comfortable and safe environment where they can speak up without anticipation of being punished. It always disappoints me when people are afraid to express their opinions during meetings. This goes against my values. I believe that even in a work setting, people should be able to be themselves. That’s what creates the right atmosphere.

It is absolutely unacceptable for me when any of my deputies begin to criticize a person's character rather than their professional qualities. I can fire someone for that. For example, when one employee rudely asked a colleague, "What are you grinning about?" I immediately dismissed him, despite his effectiveness and results. Respect for others is one of my fundamental principles. I do not tolerate disrespectful attitudes toward people or personal attacks in arguments. I believe that every businessman should be prepared to stand for their values. When faced with the choice of whether to fire a valuable employee, there may be a temptation to compromise, with thoughts like, "Where will I find someone like that again?" But remember, straying from your core principles can be costly: it can lead to irreversible changes in the company's DNA. It's like a virus that gradually undermines the system from within.

In the past, everyone in our company would address each other using the formal "you," but now we've switched to the informal "you." People still tend to address me formally, but I’m perfectly fine with being called informally. In 2023, I officially announced, "Hey everyone, let's all use 'you'." While more and more people are starting to use the informal form, many are still sticking with the formal address for now.

Business trip to the Etagi office in Kostroma, featuring a tour with top real estate agents.

From left to right in the photo:

Olga Yuryevna Maltseva – real estate specialist at the Kostroma office

Polina Dmitrievna Chernakova – sales manager at the Kostroma office

Vladislav Viktorovich Sidorenko – my deputy for relations with government authorities

Svetlana Ivanovna Gorodinskaya – real estate specialist at the Kostroma office

Ivan Evgenyevich Volkov – real estate specialist at the Kostroma office

Olga Albertovna Shepeleva – business trainer at the Kostroma office

Lyubov Vladislavovna Igrunova – real estate specialist at the Kostroma office

August 2023

There was a situation where a programmer approached me and asked, "Ildar Borisovich, may I call you just first name?" I asked him why. He replied, "It's about equality. We're a company that values equal opportunities." I thought about it, and a month later, I announced to everyone, "Please feel free to address me informally."

Those who switch to informal address often encounter mental barriers. It's impossible to change the system all at once; we live in a society that has its norms. I genuinely believe that the ideal corporate culture is one where everyone is on first-name terms. However, for those who are significantly older, it's better to stick with more formal title.

The DNA of a business is shaped by a system of metrics that reflect our priorities. Leaders focus on different indicators; some emphasize profit growth, while others concentrate on production costs. Some take pride in low employee turnover or high margins. This highlights that each leader has their own priorities, which define the uniqueness of their management approach.

Observing and interacting with various directors, I've realized that each takes pride in something unique: one might boast about having 150 realtors, another might highlight a profit margin of 22%, a third may celebrate low employee turnover, while a fourth proudly points out that one of his realtors considers their company the best in the world.