Pierre Frankel in Moscow(A): Unfreezing Change

Problem Definition
Pierre Frankel, Deputy Managing Director of Russia for H-IT, is asked to transform the organization in one year
into a profitable and fast-growing industry. He is struggling to convey his message to his subsidiary to get the
work done.

Factors affecting the growth

• Frankel faced resistance from Sergei Lebedev, the current Managing Director of H-IT. Sergei wanted to
hire a person he favoured and did not like the hire from outside. This was evidently visible as Frankel’s
office was on different flower than the other MDs. After several weeks of convincing HR, Frankel
managed to get workspace on the same floor.
• The subsidiary’s employee considered Frankel as the man from corporate, an outsider. They did not
have any faith in him and was less receptive to accept a foreigner as one of them.
• Frankel also faced passive resistance from employees. Employees did not attend the meetings, when
asked for updates on work gave vague answers. It was also came to Frankel’s attention that existing
employees passed word about his actions back to Lebedev.
• There was huge gap between work culture where Frankel had previously work and Russia. When he
wanted to bond with employee, he took one of the employees out for dinner. The employee thought
it was for a favour.
• The existing structure was such that every decision should go through MDs. This discouraged
information sharing, working towards common goals which in turn manifested in fearful and
dissatisfied employees.
• When we consider external factors, Russia’s work culture was very fond of the Frankel’s way of
working. Frankel was treated as an outsider, also he could not speak the local language which created
a barrier between him and employees.
• The government of Russia favoured local businesses and hence this also posed as a challenge.
• The system was such a way that top management’s decision was final and every decision must go
through them. Employees were afraid about their superiors and could not convey their inputs rightly.

Action Plan:
• Frankel wisely chose to hire a local person that would help him understand the organization, the
people. In this process he built goods relationship with the HR. Frankel should keep on connecting
with the HR to understand the culture as well as gain trust within subsidiary. This will help him build
his team and achieve common goal.
• Frankel should keep connecting with the employees informally so that he build a good rapport in
employees. Also, he should make clear that there is no hidden agenda of these meetings.
• He needs to make employees understand the current situation and ask for cooperation and make
them commit and deliver the work they have been assigned.