Pierre Frankel in Moscow

Adapted from Kurt Lewin’s Model

Unfreeze Stability Undesired Situation

Unfreezing/ Change

Chaos Unpredictability No control Confusing Loss-Attachment

Refreeze Stability Desired Situation

In the unfreezing phase, the change agent unfreezes forces that maintain the status quo to reveal the drawbacks of the present situation. Thus, people become discontented and aware of a need to change. Unfreezing is necessary because before any change can occur, people must believe the change is needed.

Any change process is faced with a certain level of resistance. In the movement phase, the change agent identifies, plans, and implements appropriate strategies, ensuring that driving forces (forces supporting change) exceed restraining forces (forces resisting change).

This is the last phase, during which the change agent assists in stabilizing the system change so it becomes integrated into the status quo. If refreezing is incomplete, the change will be ineffective and the pre-change behaviors will be resumed.

 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

 How it started ?  Russian subsidiary was underperforming with unmet

revenue targets and profitability objectives  Frankel lead a strategic project to develop operations  Presented business plan to EMEA and global executives  Deputy MD of CEE(Central/Eastern Europe) offered Frankel on-site growth project in Moscow

 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

MD- EMEA Dep MDEMEA MD- Russia - Lebedev

Dep MD – Frankel

MD-CEE

 Mission – Transform Organization in one year to profitable and fast growing  Responsibilities • Organizational development • Execute corporate initiatives • Act as corporate point of contact

 Period 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

 Frankel arrived in Russia on a cold day in Jan 2007

 Very important for him to understand ‘ soul’ of Russia  Exhausted, no assistant, no staff, no budget, no

support from MD  Subsidiary’s employees perceived him as an outsider  Employees knew him but he hardly knew anyone here

 In the first few weeks Frankel met all the relevant leaders in the

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organization including the line of business leaders to learn more about the organization’s operations and laying the groudwork for change. He tried to enlist the support of Nadia Abramova, the head of HR who was very close to the MD Lebedev. He tried to identify people who were keen to learn and willing to change. He encountered passive resistance because the employees were fearful of the MD and thought that if they tried to change he would get offended and would think that they switching sides He tried to hire a native Russian to assist him with his agenda for change For this he persistently tried to convince Nadia to help him and he eventually succeeded when she brought him some resumes

 The organization failed to adhere to the company’s

processes and guidelines which were followed globally  The atmosphere promoted by Lebedev discouraged teamwork and openness which led to dissatisfied employees lacking in innovation

 The major priority areas for improvement that he Frenkel

had identified were-increase business predictability, improve sales efficiency and focus on strategic internal processes  He had to start showing results soon as the management was expecting some changes to show soon and the employees were also wondering what he was up to as he had been in Moscow for more than 3 months and there were no visible changes taking place.  He had to surmount the huge challenge of changing the way the employees thought and worked, to make the work environment full of energy, collaboration and trust for each other which would help achieve the goals for which he had taken up the assignement.