Moscow (A):
Unfreezing Change
Case Study
Organizational Development and Change Management
Overview
Pierre Frankel, the Deputy Managing Director aka
COO of a global technology company, H-IT, is sent to Moscow, Russia to turn around the Russian subsidiary
Must report to subsidiary’s Managing Director,
Lebedev – Main reason for organization’s underperformance
To Lebedev and rest of workforce, Frankel = threat! Frankel’s first 3 months in Moscow
Spent time learning more about the organization’s operations and coming up with a groundwork for change
1. Sought support of all relevant members of the organization, including the
LoB leaders as well as informal leaders, such as Nadia (head of HR)
2. Met with one of the employees {recognized as open-minded}
3. Attempted to hire a native Russian
4. Continued to learn of the extent of the MD’s organizational influence
5. Experienced a lot of passive resistance
Russians have a deep sense of national identity and exhibit a strong mistrust of outsiders
Ultimate goal was to improve H-IT’s performance and ensure an increase in profitability
First 3 months in Moscow were not easy, but he did not give up
How effective has Frankel been to date?
Efficient but not very effective yet
Although, he had taken active steps to prepare the organization for change, No visible results as of yet
Corporate executives and employees starting to question Frankel’s credibility
Obstacles faced by Frankel
The
subsidiary was not complying with the company’s processes and guidelines which were followed globally.
Frankel had no support from the Managing
Director – Sergei Lebedev
He had no staff, no assistance
Frankel experienced passive resistance from the Russian employees
Time constraint
Obstacles faced by Frankel
The Russian subsidiary viewed Frankel as an outsider who is trying to bring a lot of structural changes and disturb the subsidiary’s way of running daily