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Siniša Marjan
Episode · #275

MOTORI RASTA Siniša Marijan

Guest Siniša MarjanHosted by Boris ŽivkovićMay 3, 2026
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In 1991, Končar Institute for Electrical Engineering faced a moment of reckoning. What its CEO Siniša Marijan calls a 'restructuring' was, in fact, a bankruptcy that wiped out over 700 jobs. From the ashes, a new institute emerged, starting with just 20-30 employees and a radical new mandate: operate exclusively on market principles. This forced pivot from a captive, internal service provider to a self-sufficient, globally competitive entity is a story of resilience and strategic reinvention. Marijan, who now leads the institute, discusses how this market-driven philosophy has allowed them to consistently turn a profit for three decades, even through national crises, by focusing on strategic areas like power engineering and transport. He shares how a legacy institution sheds its past to build a future, leveraging specialized expertise and international accreditations to thrive. Readers will walk away with a deeper understanding of how a company can rebuild from near-collapse, transform its business model, and find new avenues for growth by embracing market demands and strategic adaptation.

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What to take from this episode
01
In 1991, the institute faced a 'restructuring' that was, in reality, a bankruptcy, resulting in over 700 layoffs. The new entity, founded with just 20-30 employees, was built on a single, non-negotiable principle: 'operate exclusively on market principles.' A severe crisis can clear the slate, forcing a complete shift from an internal cost center to a market-driven profit generator.
02
The new institute's mandate was explicit: 'find your own work, whether within the Končar group, in Croatia, or globally.' This fundamental shift from a guaranteed internal client to a market-driven imperative defined its next three decades. When the internal market shrinks, a clear mandate for external growth isn't a suggestion; it is the only path to long-term survival.
03
Despite starting from near-zero after bankruptcy and navigating national crises like the Homeland War, the institute has closed every year with a profit for 30 years, never delaying salaries. Consistent, even modest, profitability over decades proves that a clear market focus can build deep resilience, even without the cushion of state subsidies.
04
Until recently, the institute was organized like a university, with six 'departments' focused on specialized research. This year, it reorganized into three market-facing business units: a Laboratory Center, Power Engineering, and Digital Platforms and Systems. The structure must follow the strategy; when an organization needs to be market-driven, its internal silos must give way to client-centric units.
05
The institute consolidated ten disparate labs into a single Laboratory Center, earning accreditation for over 500 testing methods and offering services beyond the Končar group. By combining previously scattered internal resources and opening them to the market, a cost center can transform into a unique, revenue-generating competitive advantage.
06
Končar Institute isn't just a research entity; it is a 'Notified Body' for six European directives, ranging from radio equipment to pressure vessels. Becoming a recognized authority in regulatory compliance provides a unique entry point into international markets, offering a distinct advantage over competitors who lack such certifications.
07
The institute played a central role in developing the electronic and power equipment for Zagreb's trams, and its solutions are now integral to trams Končar exports to Latvia. High-profile, complex projects for visible infrastructure aren't just contracts; they are proof points that build a reputation for advanced engineering, opening doors to further international work.
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