OD PIERRE FRANKEL
OD CASE ANALYSIS : UNFREEZING CHANGE
Pierre Frankel, an experienced and devoted employee of an international IT company H-IT was sent to the Russian subsidiary as a Deputy Managing Director of Russia for H-IT to improve the subsidiary’s performance and ensure an increase in profitability.
Pierre Frankel’s background
Studied Economics and business management at a reputed European University
Started career in Switzerland with a Consulting Major in Finance and moved to IT
Joined H-IT a worldwide provider of technology and services
2003- 2006 – Executive Assistant - Global Field Operation
2006 – VP Business Operations- Reporting to President EMEA
Russian Subsidiary – Current dynamics
Fired last two MDs due to opaque business practices
Current MD - Sergei Lebedev
Underperforming in his leadership but still top management reluctant to replace
Russian subsidiary was underperforming with unmet revenue targets and profitability objectives
Frankel’s Mission was to transform the Organization in one year to a fast growing and profitable one. His responsibilities included Organization Development, Executive Corporate initiatives, acting as a corporate point of contact.
Russian Economy & Culture
1991- 92 - Russia faced major political & economic challenges
Reforms with price liberalization & privatization
Post 1998 sustained economic growth
GDP 7% by 2000
Workforce mainly engineers, scientists a& mathematicians
High disposable income
Major Industries- Energy, Finance, Retail
Major government influence
Promotion of IT expansion
Lack of strategic planning skills in managers
Top –down hierarchy
Managers kept distance and few questioned supervisor in public
Zero- Sum mindset
Strong sense of National Identity & mistrust of outsiders
Loyalty to supervisors
Characteristics of the Environment faced by Frankel upon his visit :
Frankel arrived in Russia on a cold day in Jan 2007, it was very important for him to understand ‘ soul’ of Russia
Exhausted, no assistant, no staff,
Pierre Frankel, an experienced and devoted employee of an international IT company H-IT was sent to the Russian subsidiary as a Deputy Managing Director of Russia for H-IT to improve the subsidiary’s performance and ensure an increase in profitability.
Pierre Frankel’s background
Studied Economics and business management at a reputed European University
Started career in Switzerland with a Consulting Major in Finance and moved to IT
Joined H-IT a worldwide provider of technology and services
2003- 2006 – Executive Assistant - Global Field Operation
2006 – VP Business Operations- Reporting to President EMEA
Russian Subsidiary – Current dynamics
Fired last two MDs due to opaque business practices
Current MD - Sergei Lebedev
Underperforming in his leadership but still top management reluctant to replace
Russian subsidiary was underperforming with unmet revenue targets and profitability objectives
Frankel’s Mission was to transform the Organization in one year to a fast growing and profitable one. His responsibilities included Organization Development, Executive Corporate initiatives, acting as a corporate point of contact.
Russian Economy & Culture
1991- 92 - Russia faced major political & economic challenges
Reforms with price liberalization & privatization
Post 1998 sustained economic growth
GDP 7% by 2000
Workforce mainly engineers, scientists a& mathematicians
High disposable income
Major Industries- Energy, Finance, Retail
Major government influence
Promotion of IT expansion
Lack of strategic planning skills in managers
Top –down hierarchy
Managers kept distance and few questioned supervisor in public
Zero- Sum mindset
Strong sense of National Identity & mistrust of outsiders
Loyalty to supervisors
Characteristics of the Environment faced by Frankel upon his visit :
Frankel arrived in Russia on a cold day in Jan 2007, it was very important for him to understand ‘ soul’ of Russia
Exhausted, no assistant, no staff,