Overcoming Resistance to Change in Russian Organizations: The Legacy of Transactional Leadership

The historical development of leadership in Russia has been characterized by leaders who are thought to be strong and all-knowing, and who have nearly mystical powers to accomplish great deeds and achieve near-mythological status. The continued survival of transactional leadership has led to a resistance to organizational change that continues to hamper many Russian firms as they attempt to make the transition to a market economy. Transforming Russia's centralized management approach continues to be a daunting and expensive task. Organizational reform that is truly transformative in Russian businesses requires a simultaneous commitment to learning and unlearning, with transformation constituting what is called a "cognitive makeover." Russia is seen as a major opportunity for investment by a growing number of Western firms, with foreign direct investment projected to average over $30 billion annually from 2007 through 2011.