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Figure 4. five satellite enterprises; controlled these on a transfer pricing basis; and recycled the bartered goods through the creation of wholly owned retail outlets in regional, and urban centres and when necessary substituted barter for wages. Government aid in the form of tax benefits, reduced rates and subsidies were maintained by keeping the visually impaired status through the creation of the satellite enterprises which employed able bodied whilst the centre retained the visually impaired. By such means the 50 per cent visually impaired criterion was not breached but, the overall size of the organisation was trebled. Strategic growth was aided through the creation of an in-house transportation system, an adherence to product quality certification for export (See Map), employment of university art graduates for the development of new products and as trainee managers, and the judicious use of transfer pricing. All of these combined to produce new core competences. AGENTS OF CHANGE “There is nothing more difficult to take on hand, or more perilous to conduct, or more uncertain in its success, than to lead in the introduction of a new order of things” Machiavelli 1513 The Prince. Before the boss was the state now there was a new boss - the market. Decisions were made by the new management and if they made any mistakes then wages could not be paid. Russia’s economic crisis brought many domestic manufacturers a second lease of life as imports collapsed in the wake of the rouble’s devaluation in August 1998. However, to capitalise on this windfall the strategic foundations had to have been laid. Post perestroika a new business philosophy was called for to cope with the complexities associated with radical strategic change. Inevitably the spotlight falls on the primary change agents, the directors of the enterprises. Leadership requires certain actions, such as determining strategic direction, developing human capital, sustaining an effective corporate culture, exploiting core competences, establishing strategic controls, and emphasising ethical practices. Pre-perestroika most of these actions were not demanded of the directors. Strategic leadership in terms of its requirement to; anticipate, envision, maintain flexibility, and empower others to create strategic change was anachronistic. As a result the skills combinations of managerial resources were not effectively combined or harnessed into competitive management teams. The dearth of these skills combinations may, as can be seen in the Enterprises post perestroika, detrimentally impact on organisational performance, as the enterprises fail to successfully formulate and implement long-term strategies or engage in