Stephanie Lee
Sergei Sementcov: “Continuous Improvement Is Born in Crisis”
One of Eastern Europe’s leading experts in project management for heavy industry shares how to build management systems that maintain efficiency even in times of economic and industrial uncertainty.
On January 16, during the World Economic Forum in Davos, new recommendations were presented for the mining and metallurgy sectors. The document emphasizes the need for sustainable development in resource extraction — urging companies not only to improve production efficiency, but also to conserve natural resources, reduce water and energy use, restore ecosystems, and implement closed-loop recycling systems.
This global shift directly impacts regions where resource extraction and processing are key economic drivers — including Eastern Europe. According to Sergei Sementcov, a production systems architect, competitiveness today is no longer defined solely by output volumes, but by the maturity of management systems, their transparency, and their ability to continuously improve.
For over a decade, Sementcov has been implementing advanced project management practices in geological exploration and non-ferrous metallurgy. Under his leadership, companies have drastically reduced equipment downtime, cut project costs, and fostered a culture of ongoing improvement.
We spoke with Sergei Sementcov about what global-level management practices look like in the mining and metals industries — and where improvements are still needed to meet international standards.
— Sergei, new international standards for heavy industry call for not only increased efficiency but also careful resource management. How applicable are these approaches in industries where extraction and processing remain central to the economy?
These approaches aren’t just applicable — they’re becoming mandatory. Today, it’s critical to demonstrate that your company can operate sustainably: saving water and energy, minimizing equipment downtime, and adopting closed-loop recycling systems.
In my own practice, I’ve seen firsthand that efficiency and sustainability are not at odds — they actually reinforce each other. At one metallurgical plant, for example, we standardized maintenance and production processes, which reduced equipment downtime by hundreds of times — and at the same time cut resource consumption. That’s concrete proof that modern international standards can work, even in the most traditional sectors.
— You’ve transformed industry organizations — from metallurgical plants that reduced equipment downtime by 30–40%, to exploration holdings that adopted full project management systems. What principles define your management style?
First and foremost: open communication. It’s vital to clearly express goals and needs, whether within a company or with external partners. And by “partners,” I mean everyone involved in the process — all stakeholders need to feel like equals.
Second: flexibility. Partners need to be open to change and willing to find solutions that work for both sides. This is often the hardest part — many people resist shifting their mindset and struggle to embrace change at first.
Third: focus on value, not just cost. In negotiations, pricing often takes center stage, but true partnership isn’t just about financial gain — it’s about improving product or service quality.
And above all — honesty. With yourself, your partners, and your team. Without that, any transformation will eventually stall or veer off course.
Altogether, I follow a win-win philosophy. Yes, there are times when win-lose situations arise, but those should be the exception, not the norm.
— While working with one of Eastern Europe’s largest geological exploration groups, you created a system that continued working even after being handed over to other teams. What’s the secret to building repeatable, sustainable management practices?
It all depends on who drives the change — and when they get involved. One of the key success factors in building a system that can live on its own is to identify and engage change agents early in the project.
These should be people who are not only open to change but also capable of developing those changes. You train them, take them through the entire PDCA (Plan–Do–Check–Act) cycle during a pilot project — and most importantly, you get real results on real production sites, not just in reports or slide decks.
— You led the development of 45+ regional project managers by implementing a system for training, team maturity assessment, and management practice evaluation. In your view, how should organizations teach and transfer management expertise effectively?
The most important thing is not to rely solely on theory. Project managers only truly learn when they see the results of their actions in real production environments.
That’s why I always use the “Learn – Do – Improve” approach. First, we provide the foundational tools. Then we apply them together in a pilot project — and only after achieving results do we reinforce the practice through an assessment system.
This approach develops more than just knowledge — it builds confidence and a sense of ownership. As a result, the person doesn’t leave with just a training certificate — they leave with a functioning system they helped build.
— You’re an advocate of the Japanese Kaizen approach, which emphasizes employee engagement and long-term thinking. You’ve introduced Kaizen sessions at production facilities, reducing project timelines by 15–18%. How can companies turn improvement into a system — not just a one-time initiative?
There’s only one answer: without CEO-level engagement, no system will ever take off.
If top leadership isn’t genuinely invested, the whole effort turns into a pretty set of slides sitting on a shelf. The best time to implement continuous improvement? During a crisis.
It doesn’t matter whether it’s geopolitical, economic, production downturns, or a shortage of skilled labor — crisis is the perfect time to develop a culture of continuous improvement.
— How do you see project and production system management evolving over the next 10–15 years?
Given the rapid integration of AI technologies across all industries, along with the rise of autonomous systems and major corporate investments in these areas, I believe we’ll see significant progress in building highly efficient, digitally driven operational systems.
Many project stages will be modeled and forecasted using digital algorithms, and routine tasks will be handled by unmanned robotic systems.