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Pierre Franker’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 003- 2006 – Executive Assistant – Global Field Operation 2006 – UP Business Operations- Reporting to President MEME Russian Subsidiary – Current dynamics Fired last two Meds due to opaque business practices Current MD – Sergei Labeled Underperforming in his leadership but still top management reluctant to replace Russian subsidiary was underperforming with unmet revenue targets and profitability objectives Franker’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 liberalizing & prevarication post 1998 sustained economic growth GAP 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 Franken upon his visit : Franken 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 Subsidiary 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 egg all 450 employees knew who Franken was, he didn’t 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 didn’t happen from down-top Unfreezing Phase – Gathering information and laying the groundwork In the first few weeks Franken met all the relevant leaders in he organization including the line of business leaders to learn more about the organization’s operations and laying the groundwork for change. He tried to enlist the support of Nadia Abramson, the head of HER who was very close to the MD Labeled. 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 hang 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 company’s processes and guidelines which were followed globally The atmosphere promoted by Labeled discouraged teamwork and openness which led to dissatisfied employees lacking in innovation What did Franken do wrong : Didn’t establish trustworthy relations with Labeled ( the head of Russian subsidiary ) Pushed too hard at the beginning ( insisting on the office next to Levees ) Didn’t sake 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 HER ( 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 Franker’s Characteristic Traits : Intelligent and well-read Trustworthy and Visionary Confident and Self Assured Focused and Single Minded Strong willed Persistent and Determined Franker’s 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 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 Franken 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.