There are several parties involved in the current state of affairs of H-IT Russian subsidiary. The MD, Sergei Lebedev is central to the poor performance that the company had experienced in 2006 and was continuing to experience. To a large extent, this is as a result of his management policy; central management and what is referred to as “management by fear” since he wants to control every aspect of the organization and decisions being made in the company. The Russian culture has also played a role in the poor performance of the company, and many feel obliged to be loyal to networks that are in play in the organization. Pierre needs to work to change that if any success is to be achieved.
On his side, Pierre needs to ensure that he has several parties who are already part of H-IT in Russia. Key to the success of his plans for change is Nadia Abramova, the head of human resources. Nadia seems willing to accept change, albeit reluctantly and slowly, as indicated by her willingness to participate in the hiring of new people to the company through head hunters. Pierre also needs to integrate in-line business leaders in his plan. Though it has been established that most operate in silos and do not consult their counterparts, the role they play in the organization is important to the extent that their removal would result in a major disruption of operations of the company.
Individuals who need to be targeted for removal in the company are the MD, Sergei Lebvedev and the sales director. The MD has clearly demonstrated that the objectives of the company are not important to him. This is best illustrated by the blatant failure to follow the set out policies that are designed to ensure increased productivity and growth. His autocratic management style where he needs to assent to every decision in the company has resulted in a bureaucracy that hinders proper communication and growth. As such, it is important that the MD be neutralized as a force within the company. The sales director also needs to be neutralized. He has an enormous responsibility but takes it in a manner that is sure to lead to failure. Specifically, the marketing director has failed to make use of his skills to grow sales for the company, and he does not have control over his members of staff who bypass him to consult with the MD.
Kotter’s 8 Steps
- Creating Urgency
Pierre will need to develop an atmosphere of change in the Russian subsidiary of H-IT. It is important that all stakeholders understand the need for change and how it will affect them. It is also critical that Pierre be ready to address any concerns that may arise a result, and assure all the stakeholders that the changes will be for both the long term and short term benefit to them and the company. He should create an atmosphere that conveys to all the stakeholders involved of the need to change in the shortest time possible (Anderson & Anderson, 2001).
- Forming a Powerful Coalition
Pierre will need to develop a strong relationship with the individuals in the company who have been identified as pro-change. Together with them, he will be able to develop and implement the leadership needed for a change in the subsidiary. He should seek commitment from this team to support efforts at change. The coalition that Pierre will form will be as discussed earlier.
- Creating Vision for Change
Determining the values important to the change is an initial step in creating a vision for change. Pierre will have to develop such a vision that will give the members of his team the ideal situation that will exist in the organization if proposed changes are implemented.
- Communicating the Vision
A good communication strategy will ensure that the vision for change is communicated powerfully to all the stakeholders who are expected to contribute towards making the change a possibility. An analysis of organizational structure and culture will play a key role in developing a powerful communication strategy to reach all the relevant stakeholders.
- Removing Obstacles
Pierre will have to remove those individuals and cultures that act as obstacles to the proposed changes. In this case, it may require that he develop mechanisms of removing the MD, sales director and any employees who act as obstacles to the planned changes
- Creating Short Term Wins
Any proposal for change will have timelines and both short term and long term goals. The plan should be in such a manner that there are measurable short term objectives that will be attainable within very short time. These will act to motivate members of the change team and other stakeholders to increase their input towards the proposed changes.
- Building on the Change
Any objectives in the change plan that are achieved should not be considered as an end, but more changes should be built upon such achievements. This may involve setting new objectives and the plan for changes is implemented (Hill & Gareth, 2012).
- Anchoring Changes in Corporate Culture
Any changes that are realized should be anchored into the organization culture. At that point, the new ways of carrying out business will be established as successful, and they should be integrated into the policies of the company. This will ensure that new policies that promote growth are part of the policy structure of H-IT.
Anderson, D. & Anderson, L.A. (2001). Beyond Change Management: Advanced Strategies for Today’s Transformational Leaders. San Francisco, CA: Jossey-Bass.
Hill, C. & Gareth R. J. (2012). Strategic Management Theory: An Integrated Approach, Boston, MA: Cengage Learning.