Following the declaration of independence, the business sector in Lithuania experienced a period of rapid growth. The legendary “wild capitalism”, which refers to the transition from a command to a market economy, became a time of opportunity for all the ambitious and bold individuals. Today, 30 years later, only a small number of those businesses are still operational. Nevertheless, some of them are still led by the same people. One such person is Stepas Telešius. He is a Vilnius University (VU) alumnus, one of the founders, shareholders, and board members of ACME Group, as well as the chairman of the board of Vesta Consulting, a sustainable business consulting company. He will be speaking at the 19th Prof. Vladas Gronskas International Scientific Conference on 29 November about how he and his peers from university, when establishing a business in 1993, were learning the principles of Western business in order to help the country become more European, and how this is contributing to the development of sustainable in business practices in the present day.
Recipe for success: knowing yourself and acknowledging your weaknesses
“An educated nation is a wealthy nation. It is, therefore, important to pursue lifelong learning. At university, we learn to systematise, analyse, and create. A solid foundation facilitates lifelong learning. Having been an active student at VU myself, it is a great honour and pleasure for me to contribute to the education of this university’s students and to the knowledge economy in Lithuania,” says Stepas Telešius. The speaker, who considered launching a business while pursuing his studies at VU Kaunas Faculty, notes that both then and now, in the digital age, long-term visions remain uncommon. People strive to survive and seek to enrich themselves here and now, often without investing significant effort or choosing solutions without a long-term perspective. He considers the recipe for the longevity of the ACME Group to be boundless curiosity and the ability to embrace different opinions.
“In a team setting, our differences are the essence. Differences between business partners are important because they help make sound business decisions. Some individuals are more open to change and risk-taking, while others are less so. The key is to forgive minor mistakes, agree on shared expectations, maintain respect and friendship, and trust that everyone is working for the benefit of the company. I believe that when shareholders are a team, it benefits the business. I am a strong believer in this business model,” states Telešius, one of the founders and shareholders of ACME Group. He maintains that as time passes, people and the relationship between them evolve, but the fundamental principles that unite the co-founders remain the same.
“For example, my strengths are open-mindedness, creativity, curiosity, trust, and a desire to learn new things. I am constantly seeking to create something new. Strategy, new businesses, new industries, markets—these have been my themes throughout my life. On the other hand, I acknowledge that my weaknesses are consistency, teamwork, and thoroughness—qualities that are essential for a good manager. I am aware of this, which is why I have not led companies for the past 12 years. I do not waste time in areas outside of my expertise. Instead, I seek out managers who possess these qualities, and they lead excellently,” explains Stepas Telešius. The businessman believes that it is crucial to understand your personal strengths and leverage them as a foundation for taking action in business.
Continuous study allows to experience the pulse of business
Although his first higher education diploma was obtained 30 years ago at VU Kaunas Faculty, Stepas Telešius has continued to update his knowledge by studying executive education at foreign business schools such as Harvard University, London Business School, and Cambridge University.
“For me, studying is a kind of ‘mobilisation’, an ability to concentrate, to know, to learn, and to understand, while a diploma is the result of all this. Both are equally important for the development of personal qualities. It is also essential that it creates a certain curiosity, a greed for new knowledge, and a lifelong willingness to learn. It allows you to get a feel for the changing business environment and keep up with the best practices in business”, explains the entrepreneur. In his view, a network is essential for a successful career in business.
“As in mathematics, detailed knowledge fades over time, but the ability to think in structures and logic and to solve complex tasks remains,” adds Telešius, emphasising that the fundamentals of economics form a certain mindset, but specific economic knowledge changes rapidly with the changing economic conditions: in terms of strategy formation, business culture, employee engagement, marketing, business process management, their digitalisation, etc.
Keeping pace with the rapid development of technology
“Businesses of ACME Group revolve around technology. Therefore, it is important to ensure that our product range is up to date and that we are constantly at the forefront of bringing the latest technologies to the Baltic market,” shares Stepas Telešius about the direct impact of progress on the pulse of business.
“AVAD Baltic, which is one of the companies in the group, works only under the contract with Apple. When working with Apple, we simply must keep up with their pace to ensure the leadership of innovative Apple products,” he states.
“Another company, ACC Distribution, is a ‘broadliner’ and deals with several hundred different suppliers of computers, electronics, and home appliances. We have set a strategic goal of at least 5% of sales coming from new products annually. We have been meeting this goal for many years now,” comments the entrepreneur, pleased with the strategy that has proved its worth.
Artificial intelligence is just a tool
Artificial intelligence (AI) technology solutions are currently experiencing the fastest growth and are the subject of the most controversy regarding the future. Stepas Telešius has no doubt that this will have an impact on business change and decision-making. He notes that businesses are already attempting to hire specialists to assist with the implementation of innovative solutions within their companies. However, they are missing the involvement of the managers in exploring AI and its possibilities.
“After all, it’s all about providing comprehensive information and formulating the right task. Managers know their business best. They should be the ones interacting with AI. Today, it is common to create a department where the ‘experts’ sit, but they lack the understanding of the business and only create small process changes,” Stepas notes his surprise at the prevailing attitude.
“I am aware of companies where the work of department heads is already being carried out by AI. The role of the company head is to organise and provide AI with all the information they think is necessary. Some of the additional information is requested by the AI itself. Market information, product catalogues, and prices are provided by people, while the AI offers solutions in the area of marketing, sales strategies, or recipes for new products,” he says, adding that in this case, the manager’s personal work with the company’s AI, as well as personal development in this area, are essential.
There is a lack of focus on the sustainability of Lithuanian businesses
Stepas Telešius observes a similar approach to sustainability. Rather than modifying the company’s core philosophy and integrating sustainability principles, businesses are attempting to address this complex issue by establishing the role of a sustainability manager or a professional department.
“Similarly, in the case of AI, a sustainability specialist or specialists are hired, yet the management team is unaware of their specific roles and responsibilities. A report is produced, someone even reads it, and the job is done, but no change happens within the organisation,” he expresses regret over the indifferent attitude towards a tool that is so important for business.
Telešius believes that a company’s approach to sustainability begins with ensuring that all employees have a clear understanding of what it entails, including the concepts of ESG (Environmental, social, and governance (ESG) is an abbreviation for an investment principle that prioritises environmental, social, and corporate governance issues), what the company’s impacts and areas of impact are, which effects are significant and worthy of focus, and what changes can and should be made. Only then can environmental, social, and governance objectives be set and their implementation planned.
“This entire ‘setting’ process must be completed by all managers and fully understood by all employees. This will ensure the company has a clear sustainability strategy that, like the business strategy, is known and understood by the entire organisation. Only then can change begin,” says the sustainability advocate. Stepas Telešius believes that skipping these steps will not help a company contribute to a better future, even with the most beautifully written goals.
ACME Group is a Lithuanian capital group of companies with 30 years of experience. The group unites more than 30 companies operating in the Baltic States. The group includes such companies as ACC Distribution, AVAD Baltic, ACME Solar Group, Servisa ICT, ACME Film, ACME Valda, ACME NT, and others. The group’s business areas, which achieved a turnover of EUR 800 million last year, include the wholesale of electronics equipment, sustainable energy, real estate development, film production and distribution, and more. The group has created over 400 jobs.