Contrasts in culture: Russian and Western perspectives on organizational change

When Westerners enter Russian companies, either by acquiring shares in existing ones or by making greenfield investments, they plan, initiate, carry out, and manage ambitious and fundamental organizational changes. In the complex process of planning change, they often face serious difficulties and experience clashes with the local managers and employees. This article focuses on planning change in Russian companies with foreign participation. Based on extensive interviews with Russians and Westerners in five companies, if identifies four major obstacles arising in that process: the variety of roles in the change process, the need for developing common understandings, the manner in which vision is communicated in the organization, and the importance of symbols and signals in the process of planning and carrying out organizational changes. The article addresses these themes from both Russian and Western perspectives. It presents a number of practical lessons and guidelines for Western owners, managers, and expatriates in Russian companies.