Turkey can benefit from the global attention to be paid to countries with large domestic markets. The rate of mergers and acquisitions can increase dramatically.

Dunder Mifflin is the paper and office supplies company in the TV series "The Office." We used to watch "Yes, Prime Minister"; now, we watch "The Office." Also, I occasionally watch the 1970s series "Fawlty Towers," starring John Cleese, over and over. The theme is always the same: Managers are very important. The skills of the manager can make or break a company, or a country. For some time now I have been sharing my views about the overall managerial capacity in Turkey. Soon, I will tell you what I think about the gloomy project disclosed two days ago. But today, let me tell you why I think that the lack of managerial skills from which Turkey suffers is in fact an opportunity for rapid growth.

Actually, I will continue with the topic I have been talking about for a week now. The reminders first: I argued that the twenty-first century would be marked by the quest of global firms for good customers as much as for cheap labor. Turkey is a country where the domestic market is important. So, I stated, we should expect that more mergers and acquisitions will take place among the corporate sector. But, the day before, I underlined that it is quite difficult for Turkey, which has failed to overcome the nineteenth century agenda, to become a target country for global firms. I am of the opinion that in the middle of the consecutive elections from 2011 to 2015 and the debates about the system, the agenda of the country cannot shift to how to become a source of global growth. With this perspective, I believe that Turkey is not the perfect market for global firms that are specialized in easily picking matured fruits. But have hopes died for Turkey? No.

Exactly at this point, the lack of managerial skills across the corporate sector offers a huge opportunity for Turkey: the chance to restructure the corporate sector. Is it possible to make a fast growing and more successful firm out of a successful Turkish firm? Yes, it is. Studies that were first conducted in the US and the UK and recently carried out in India suggest that managerial skills are of significant importance for the productivity gaps between firms and countries. This is exactly what a former study published in 2003 by McKinsey pinpointed for Turkey. If, out of two firms operating in the same region and sector, one has relatively lower productivity, it is most likely that this stems from bad management. Studies also reveal that the basic performance differences between local and global firms also can be explained via managerial skills. According to this, the level of managerial skills in an Indian firm corresponds to 75 percent of that in an average US firm. The rate for British firms compared to US firms is 88 percent. So, it is not a coincidence that many of the TV series with an office concept emerge from the UK. They are complaining for a reason.

Then, is it possible to carry out a market-based restructuring in the corporate sector minimizing the expectations from the state? Yes, indeed. This is what the venture capital and private equity (PE) firms try to accomplish in Turkey. PE activities, in a sense, are tailoring for modification. You become a partner, modify the management, change the business plan, revise the personnel policy and raise the awareness of the firm about the world. Then, your regular firm suddenly turns into a fast growing firm enjoying productivity gains. It appears that Scott Adams, the illustrator of Dilbert, knows the deal. It appears that there are a number of matured fruits that can be picked easily herein Turkey as well.

Turkey can benefit from the global attention to be paid to countries with large domestic markets. The rate of mergers and acquisitions can increase dramatically. We had better assess the venture capital issue from this perspective, too. In this respect, the recently established Venture Capital Sector Assembly of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) is a timely attempt.

Dilbert is living with us here. To whom this might concern.

This commentary was published in Radikal daily on 29.04.2011