NITIN JAIN

140103116
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 subsidiarys
performance and ensure an increase in profitability.
Pierre Frankels 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
Frankels 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
NITIN JAIN
140103116
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, no budget, no support from MD
Subsidiarys employees perceived him as an outsider
Employees knew him but he hardly knew anyone here
Top down hierarchy
Prevalence of informal networks
Paternalistic leadership
Lack of transparency
Sense of togetherness
Reasons for cold reception :
He tried to establish interpersonal skills one on one instead of meeting the whole staff ( for eg
all 450 employees knew who Frankel was, he didnt know them; he put the ones he chose for
dinners in an awkward position, they could be regarded as traitors )
He wanted to win the trust by first convincing 1 person, then another, exponentially, but taking
into account that there was a strong top-down hierarchy, changes didnt happen from down-top
Unfreezing Phase - Gathering information and laying the groundwork
In the first few weeks Frankel met all the relevant leaders in the organization including the line
of business leaders to learn more about the organizations operations and laying the
groundwork 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
NITIN JAIN
140103116
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
Issues :
The organization failed to adhere to the companys processes and guidelines which were
followed globally
The atmosphere promoted by Lebedev discouraged teamwork and openness which led to
dissatisfied employees lacking in innovation
What did Frankel do wrong :
Didnt establish trustworthy relations with Lebedev ( the head of Russian subsidiary )
Pushed too hard at the beginning ( insisting on the office next to Lebedevs )
Didnt take his wife along with him ( had to travel a lot and miss some events )
What did he do what was right :
He sought support from the head of HR ( intimate friend of the director )
He hired a native Russian with an MBA
Focused on reaching small goals
Started to give the employees the freedom to express themselves
Frankels Characteristic Traits :
Intelligent and well-read
Trustworthy and Visionary
Confident and Self Assured
Focused and Single Minded
Strong willed
Persistent and Determined
Frankels Leadership Skills :
Strategic Planning
He has the ability to learn and adapt
Managerial wisdom is capable of seeing an overall picture of the organization
Competent at making strategic plans for his company
Quick to make changes inside the organization
NITIN JAIN
140103116
Effective at problem solving
Able to set a picture of how the future can be better than the present and to convince people to
move in that direction
Movement Phase :
The major priority areas for improvement that he Frankel 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 assignment.