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Centre Stage on Mergers and Alliances

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Audrey Sand

on 24 May 2014

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Transcript of Centre Stage on Mergers and Alliances

Mergers and Alliances
• Acknowledge feelings of stress and anxiety throughout the process - help
keep the team focus clear.
• Help everyone see that pulling together can accomplish the task that no one can
do alone.

Collaborative Leadership


“Collaborative leaders use skills to draw teams to their common goal across blended organizations or amongst many units within a common organization.”

• Negotiate by keeping people’s needs, the product being created, and relationships being built always in the forefront.
• Be consistent, clear, and "expect" collaboration.
• Point out the value of the rich mix of differing views in achieving the desired outcome.
• Never take “No” for an answer.


Organizing Culture Revitalization
Map existing subcultures
Encourage Subcultures to Flourish
Knit Subcultures together
Challenges
Putting Fragmented Cultures Back Together
Build from the ground up to unite fragmented subcultures into a coherent whole around a common purpose

Mergers and Alliances
Process
Leadership Style
Culture
Human Strategies
Reframing Organizational Process
Collaborative Leadership Process
• Develop broad scope
alliances and entice the right stakeholder’s from the start.
• Keep the focus goal orientated.
• Build trust, leave your ego at the door, encourage the passion of others to bring their best ideas forward.
• Give credit to great ideas.

Translation
into Practice
Conceptualizing Mergers
• “Mergers are not an occasion; they are a process” (p.198)
• The way people are handled = crucial determinant of success or failure
• Strategies to “ensure that such employee stress is diminished and that employees feel competent, able and willing to handle the operational requirements of the merger appropriately” (p. 198).

• Different stakeholders may relate to different phases of the cycle at the same time
• Complete each phase before moving to the next one

Devine and Hirsh (1998) - four stages
Run-up ->Transitional ->Change Integration -> Closure
Pritchett, Robinson and Clarkson (1997) - five stages
Envision -> Assess ->Deploy -> Manage Close
Duck (2001) 5 stages
Stagnation -> Preparation -> Implementation ->Determination->Fruition

Human Strategy
Framework for management and leadership to address the human resource element during and after a merges and acquisitions



What happens?
“The big challenge here is integration and people” (p.70)
“Are people going to stay? Are they going to work together?(p.70)

Process
• Complete a cultural assessment
before
a merger & acquisition
• The Human Resource department must be the first to be aligned with the newly created organization's vision and culture
• The Human Resource department supports and guides the challenging task of aligning everyone in the organization

Challenges
• Addressing all of Krell's (2001) five
steps for succesful mergers at the same
time is challenging
Translation into
acknowledge subcultures
articulate and document disparate beliefs and points of view
ensure dialogue includes a variety of subcultural voices
identify common ground to start to unify the corporate canopy
Reframing Organizational Process
Boleman & Deal (2003) propose that integrating organizational frameworks is essential to provide effective leadership
during major change.

4 Frames to address Organizational
Process (Boleman & Deal, 2003)
1. Structural – responsibilities, rules,
policy, procedure
2. Human Resources – needs, feelings,
skills, limitations
3. Political – bargaining, negotiation, compromise, coalitions
4. Symbolic – rituals, ceremonies, vision,
story telling

Organizational
Process
Stakeholder perspective differs as it relates to strategic planning, decision making, reorganizing, evaluating, approaching conflict and goal setting.
Leadership identifies whether stakeholders are viewing the system through a structural, human resource, political or symbolic lens
Once the lens is identified, leadership can tailor their approach to the needs of that particular group.

When complex change occurs, problems can be poorly defined and options murky.
Stakeholder perspective—not leadership's—determines how they act.

Application
• Need commitment and motivation – human resources and symbolic frameworks
• Require technical quality – structural framework
• Environment of uncertainty – structural and human resources framework
• Conflict and scarce resources – human resources and political frameworks
• Working from the bottom up – political framework

Deal, T. E., & Kennedy, A. A. (1999). Chapter 10: Putting fragmented cultures back together. In
The new corporate cultures: Revitalizing the Workplace After Downsizing, Mergers, and Reengineering.
(pp. 213-232).
Deal, T. E., & Kennedy, A. A. (1999). Chapter 10: Putting fragmented cultures back together. In
The new corporate cultures: Revitalizing the Workplace After Downsizing, Mergers, and Reengineering.
(pp. 213-232).
Subcultures are resistant to change
Subcultures flourish in response to:
having a specific function, shared history or proximity
operating in an context viewed as hostile and threatening

Deal, T. E., & Kennedy, A. A. (1999). Chapter 10: Putting fragmented cultures back together. In
The new corporate cultures: Revitalizing the Workplace After Downsizing, Mergers, and Reengineering.
(pp. 213-232).
Deal, T. E., & Kennedy, A. A. (1999). Chapter 10: Putting fragmented cultures back together. In
The new corporate cultures: Revitalizing the Workplace After Downsizing, Mergers, and Reengineering.
(pp. 213-232).
Linden, R. (2003). The discipline of collaboration. Leader to Leader, (29), 41-47.
Linden, R. (2003). The discipline of collaboration. Leader to Leader, (29), 41-47.
Linden, R. (2003). The discipline of collaboration.
Leader to Leader, (29), 41-47.

• The final product is shared ownership.

Linden, R. (2003). The discipline of collaboration. Leader to Leader, (29), 41-47.
Muller, N. J. (2006). Mergers and managers: What's needed for both to work? Reflections on a merger of two higher education libraries of KwaZula-Natal. South African Journal of Library & Information Science, 72(3), 198-207.
Muller, N. J. (2006). Mergers and managers: What's needed for both to work? Reflections on a merger of two higher education libraries of KwaZula-Natal. South African Journal of Library & Information Science, 72(3), 198-207.
Muller, N. J. (2006). Mergers and managers: What's needed for both to work? Reflections on a merger of two higher education libraries of KwaZula-Natal. South African Journal of Library & Information Science, 72(3), 198-207.
Muller, N. J. (2006). Mergers and managers: What's needed for both to work? Reflections on a merger of two higher education libraries of KwaZula-Natal. South African Journal of Library & Information Science, 72(3), 198-207.
Process:
Merger Cycles
• A structured approach to managing mergers and acquisitions
• Provides guidance to management & leadership
• Promotes clear communication to employees

Duck’s (2001) 5 phases of mergers:
1. The stagnation period: poor strategy and lack of leadership
2. The preparation period: decisions are made, operational work done
3. The implementation stage:
“managing the implementation”
(i.e. new structures, job definitions,
processes)
4. The determination phase: making
the new vision reality
5. Fruition: acknowledge hard work, recognize achievements.
Krell, E. (2001, May). Merging corporate cultures. Training, 38(5), 68-74.
Krell, E. (2001, May). Merging corporate cultures. Training, 38(5), 68-74.
Krell, E. (2001, May). Merging corporate cultures. Training, 38(5), 68-74.
Krell, E. (2001, May). Merging corporate cultures. Training, 38(5), 68-74.
Benefits
• Increased awareness about culture and human
strategies during M&A
• The five steps = available tools for leaders
and managers
• Increases the likelihood of a successful M&A

Human Strategy: Translation into Practice
Five steps to successful M&A:
1. Define a realistic culture - keep the positive elements
of old cultures as a baseline for developing the new.
2. Providing savvy leadership - visible and strategic leadership is required; engaging employees early to ensure buy-in in
3. Communicate consistently and carefully
4. Address the “me” issue – meet individual needs and concerns of employees while developing a new realistic vision and culture.
5. Share space – the sooner the two companies share a physical space the better employee engagement

Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice and leadership (3rd ed.). San Francisco, CA: John Wiley & Sons.
Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice and leadership (3rd ed.). San Francisco, CA: John Wiley & Sons.
Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice and leadership (3rd ed.). San Francisco, CA: John Wiley & Sons.
Bolman, L., & Deal, T. (2003). Reframing organizations: Artistry, choice and leadership (3rd ed.). San Francisco, CA: John Wiley & Sons.
A rational process focused on gathering and analyzing information during complex change.
Challenges
PROCESS
LEADERSHIP
STYLE
CULTURE
HUMAN STRATEGIES
REFRAMING ORGANIZATIONAL PROCESS
Benefits
Benefits
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