Interim Management in Russia

The supportive hand by your side:
Experienced, objective and impartial

For you in Russia!

 

Are you looking for an interim manager in Moscow or St. Petersburg? We would be pleased to support you with our expertise and knowledge.

With regard to Russia, the term interim management refers to the temporary employment of an independent legal or natural person as general director, managing director or CEO of a Russian branch or subsidiary.

For many years, the general director was the only executive body that had sole control over all processes, business accounts and assets of a company. In 2014, however, there was an amendment to the law which now allows Russian companies to appoint two General Directors. The introduction of such a so called 4 eye system helps to divide the individual responsibility as well as the power of disposal and thereby ensure additional security.

Interim management can basically be divided into operational and administrative interim management. The different approaches are usually applied on different occasions or time periods and can be assigned accordingly.

1.

Administrative interim management in the start-up and implementation stage in Russia

Administrative interim management involves the fulfilment of exclusively formal tasks that are delegated directly by the parent company. For example, this applies to communication with government bodies, the opening of a bank account or the handling of documents in connection with the establishment of a subsidiary or branch.

According to Russian company law, a general director must be appointed at the moment a company is established. If this function is to be performed by a foreign citizen, he or she requires a work permit and an appropriate work visa. The problem is that both can only be applied for in the name of the company after its foundation. In order to bridge this gap and maintain full control of the company, an interim manager is appointed, who can but not must subsequently continue to be employed.

In this case, the interim manager does not make any unauthorized decisions, but only executes what is assigned to him/her. Full control is always in the hands of the parent company.

2.

Operational interim management during crisis and restructuring phases in Russia

The Russian culture and mentality differs markedly from the Western culture in some areas. As a result, Russian managers do not always fully meet the requirements of foreign parent companies, especially in times of crisis and restructuring. Especially in difficult stages of an enterprise, a close coordination between the parent company and local management with regard to values, hierarchical thinking and reliability is indispensable.

Operational interim management sets in at this point and is thus much more action-oriented than administrative interim management. An operational interim manager is appointed as soon as negative developments occur and there are doubts that the local management will be up to the tasks ahead. He intervenes correctively in ongoing business processes and carries out unpleasant tasks and necessary adaptations.

Selection of a suitable interim manager for the Russian market

Regardless of whether these are operative or administrative tasks for which an interim manager is to be employed in Russia, the selection for such a specific market is not an easy task.

In order to prevent wrong decisions and later problems, it is essential to pay attention to the fundamental. An interim manager should have extensive experience in local management as well as extensive knowledge of the specifics of the Russian market, the cooperation with and management of Russian employees as well as in dealing with local authorities and business partners. This should be proven by many years of work at local level. Ideally, he also has an extensive network of relevant contacts.

Advantages of interim management in Russia

  • Objective view through independence and impartiality, no operational loss of objectivity

  • Payment on account and on an hourly basis, payment only in case of work

  • No compensation for termination of contract or additional personnel expenses during the employment

  • Task-oriented, objective and goal-oriented working method

  • No problems with visa and work permit

  • Time saving - Long training periods are no longer necessary

Our services in the area of interim management in Russia

We are happy to support you and your company in both administrative and operational tasks by providing an experienced interim manager.

Administrative Interim Management:

  • Consultation and control of document traffic

  • Administrative procedures and signing of documents

  • Verification and signing of (work) contracts, invoices and regulations

 

Operational Interim-Management:

  • Representation of your company's interests in negotiations after consultation with the parent company

  • Bridging personnel bottlenecks

  • Representative duties and representation of the company to the public

  • Employee management

  • Analysis, elaboration and implementation of restructuring processes

  • Support in crisis and project management

 

 

Do you have any questions regarding interim management in Russia? Please do not hesitate to contact us. Please feel free to send us an e-mail, give us a call or make an appointment at one of our offices in Moscow, St. Petersburg or Vienna.

For further information on interim management in Russia and on numerous other topics in the Russian economy, please refer to the publications section or on our Russia Economy blog.

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Business Set-Up, accounting and reporting in Russia

Ausserer & Consultants is an international tax and accounting company based in Moscow, St. Petersburg and Vienna. Since our foundation in 2012, we have made it our mission to support small and medium-sized companies in local accounting including tax returns, reporting, business Set-Up and expansion in Russia. We also advise on individual questions regarding the Russian market and support our clients at all times.