After living in Moldova for nearly a year and developing a new strategy for a microfinance institution, I thought it would be interesting to discuss the process of organizational change in implementing the strategy. It may look slightly different in a former communist country, but the key elements span the cultural divide.

Moldova is a small, landlocked country in Eastern Europe. It was a former member of the Soviet Union and, since the collapse, has struggled to gain traction economically. There is a widening gap between the rich and poor, which is only increasing with the high level of corruption at the tops of organizations, including the government. Moldova is the poorest country in Europe and does not have the social programs in place to support the poor. As a result, microfinance institutions play a large role in economic development on the local level, and provide opportunities for the poor to start or grow a business. I could go on about the role of microfinance in Moldova, but that is a discussion for another time.

I was able to experience first-hand the process of implementing a Balanced Scorecard at an institution located in this former communist country. At first, many of the challenges were similar to those challenges faced in any other organization; an unclear mission and goals; nonexistent strategy; poor organizational alignment; unable to prove impact to stakeholders, but after a short time it was evident that there was a bigger problem-resistance to change.

There may have been distrust for foreign ideas. It may have been the old communist mentality. It may have simply been a lack of understanding for what the Balanced Scorecard actually was. Regardless, it was making it difficult to implement strategic change in an organization that was unwilling to deviate from its normal course of action. In order to break this resistance, the organization needed to understand, in clear and simple terms, what the process of change was going to look like. Let's take a look at this process.

It does not matter whether you are in a third world country or in a developed western society. There are four key steps that need to take place in the process of organizational change.

1. The organization needs to identify and understand the need for change
2. The next step is planning for that change to take place
3. After the plan is developed, the change needs to be implemented
4. Once the change is implemented, it needs to be monitored

Throughout this process, there needs to be a great deal of focus on communication, especially in a trilingual environment. It is best to use multiple channels or methods in order to establish productive 2-way communication. A common understanding for the reasons behind the change will make it much easier as you progress through the process. Building trust along the way is another key element that should not be overlooked. In a corrupt society like Moldova, as well as in organizations, developing a trusting relationship can be the sole difference between success and failure. Change is not always an easy process, especially for an organization surrounded by deep communist roots. However, it can have a huge impact and at the same time be very rewarding. Stay tuned for my next blog, I can't wait to tell you about the successes of the Balance Scorecard in this microfinance institution.