International consulting firms in Russia- A study on how to undertake efective consulting services in the Russian business environment

Abstract

After the fall of Communism in Russia, the country's business environment has indeed changed and is today characterised by high volatility and unpredictability. The international consulting firms, which we are focusing on in this thesis, have an important role in consulting and guiding both foreign and local enterprises active in this new environment. We are looking into the international consulting firms' ability to provide effective services on this specific market. As country culture determines the way in which individuals behave and in turn also affects the Russian business behaviour, this is a major focus in our thesis.

We have found that international consulting firms' services are especially sensitive to culture since these can be experienced and perceived differently depending on who the receiver is and therefore they have to be adapted to the local business environment.

We believe that in order to be effective in the Russian market, it is indeed important for the international consulting firms to adapt their services according to the local specific business environment and its characteristics. With regard to design, delivery and implementation a tailor made service has to be made. Therefore the consulting firms need to have a thorough understanding of the client, his resources and capabilities and the specific business environment that he operates within. For a consultant it is crucial to have the ability to reflect over how country culture influences the business environment and thereby, the consulting service. We have found that international consulting firms need to find ways in which they can better integrate the cultural understanding in their everyday work. Today they use mainly local personnel and build teams with clients in order to improve effectiveness. However, we believe that this is not enough but needs to be combined with other methods. Our main recommendation in this matter is to implement a learning organisation in the international consulting firm.