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Leadership and Motivation

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Skakova Botagoz

on 3 July 2014

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Transcript of Leadership and Motivation

Consulting Team
The 1st question
Pierre Frankel is one of the best examples of a true leader. His story begins with the fact that corporate executives had sent him from the company’s headquarters in Zurich, Switzerland to Moscow, Russia in January 2007 with the difficult task of turning around a top-priority subsidiary – while not holding the top position. Frankel’s new appointment was Deputy Managing Director, the equivalent of Chief Operating Officer.
The good steps toward establish himself as COO and change agent:
1. On Frankel’s first day, Lebedev, the Managing Director (MD) of Russia to whom Frankel would also report - assigned him a work space on a separate floor from his office. Frankel, recognizing the symbolic and practical importance of this first encounter, refused. He insisted on having an office next to the managing director.
2. The actions that he did give the result: negatively attitude of stuff is changed into interest. After 3 months of communication employees told Frankel that he communicated well internally. In comparison with a frosty reception in the beginning. During these months he managed to get into touch with the employees.
3. His strategy for this period of time was to put himself in learning mode. He managed with gathering information not only about all relevant members of the organizations, but also organizational influence.
The 3rd step
The 4th step
we assessed Pierre Frankel’s first three months in Moscow. Has he managed to establish himself as COO and a change agent? How effective are his actions to date?
"Company cultures are like country cultures. Never try to change one. Try, instead, to work with what you've got. "
Peter Drucker (Management Consultant)

Needed to Manage the Organization, Not the Change Itself.
The 2nd step
The 1st step
John Kotter
Organizational Change Model
The 5th step
The negative side of how Frankel manages to establish himself as COO and change agent:
1. Employees questioned the lack of results. The stuff did not recognize him as change agent at all because he hasn’t seemed to accomplish anything. Frankel understood public opinion about his action. There was high risk of internal collapse.
2. He did not manage to get into contact with Lebedev. Frankel only openly disagreed with Lebedev’s position on main points.
3. If we judge from the facts, the subsidiary had missed its objectives the previous year and the first quarter’s financial result of 2007 was disappointing. The revenue growth target was fixed at 40 percent and the profitability target was high.
4. Frankel did not managed to give a proper answer to the bosses above him who are demanding faster action.
In general Pierre Frankel in his first 3 months in Moscow not have an opportunity to change the local working conditions as he encountered many obstacles such as there were many issues concerning the transition of Russia from centrally-planned to market economy. Later on he examined that the organization failed to adhere to many company processes and guidelines, especially in the sales area: Sales forecasting, pipeline building, sales bonuses, and bad debts. Furthermore, he underwent pretty negative attitude from MD Lebedev and his 450 employees. So at the beginning he just tried to go with “I need to have very, very large ears” in order to be aware of the current situation, understand the collective and join them to succeed. Considering all of these issues, Pierre’s ineffective three months of work should be given a credit.
As any leader, and in general, a new employee in the new organization Frankel faced with crucibles of leadership. Pierre Frankel’s first three months in Moscow was not so easy: he came across some difficulties such as natural and cultural differences, problem with knowledge of the Russian language, a strong distrust of employees towards Frankel, as an outsider, unreasonable hostile behavior of his Managing Director - Sergei Lebedev, and other difficulties which will be described below. But the main problem was an underperforming subsidiary, which failed to meet revenue and profitability objectives. Faced with such problems, Frankel did not give up. He made every effort to solve these problems didand to become an experienced leader in the industry with a good network of relationships with top Russian managers, officials and subordinates. He understood that he needs to learn a lot from the organization if he wants to make a change. “You need to go there and listen and learn from them and then you can agree, negotiate some changes, get some improvements, and with this you create trust and you build on that,” Frankel said. As a result, he has managed to establish himself as COO and a change agent.
What obstacles does he face, and how can he remove them? What must he get done to improve business results? Which are easy, which are hard? Which can be started quickly, which should wait? Prioritize the challenges and set goals.
Consider all stakeholders and constituencies. Who should be in Frankel’s coalition?
Corporate Executives

Sergei Lebedev

the Managing Director (MD)
Nadia Abramova
the head of HR
450 employees
Elena Stolychnya
The native Russian
Ideally someone above Lebedev
Create a Vision
Communicate a Vision
we assessed Pierre Frankel’s leadership style and effectiveness.
"Give us the puzzle, We'll give it a fix"
Full transcript