There’s an magnificent irony to the expression ‘post merger integration’ which, as the M&A rollercoaster starts to speed up again at an alarming pace, I wanted to share with you. In fact every part of that phrase can be challenged… Post – the reality as any practitioner will tell you, is that the work starts a long time before completion and potentially announcement. Many studies have shown that if you start […]
Do you take enough risk?. Good article on the nature of leading groups through a real learning experience by Michael. All of us have that experience of throwing out the plan and doing something fresh. It’s interesting for me that often this involves someone else in the decision making process…the support of someone who running the session with you in making the decision / taking the risk is often important. Which […]
Imagine the following situation: You’re given the challenge to program manage a post merger integration, carried out in the public eye, with all of the details (cost, complexity, high level strategy) broadcast to the world. After a few months, you discover that actually there were a number of other people in the frame for the work, who for one reason or another, couldn’t take up the challenge! You’re given a thousand pages of diligence, written […]
I was made aware recently by a good friend of mine (!) that this is my 25th year anniversary, working in the world of M&A, specifically post merger integration – a scary thought indeed but also a moment to reflect perhaps on what if anything I’ve learnt. As consultants, we are frequently accused of looking for the big impact change…the magic bullet which will dramatically transform the project / or […]
This morning, as I sit on yet another flight, this time from Singapore to Hong Kong, it’s ever more apparent to me that far from video conferencing and other forms of communication taking the place of international travel, planes are fuller than ever with business travellers flying short distances for a schedule of meetings, which from my own straw poll over the past 18 months, are mostly internal to their […]
I’m working on a couple of transactions at the moment and was reminded recently again of the critical role that an exiting CEO can play in smoothing the path of a deal, often at its most important phase, in the post merger integration. For those of you who have been involved in M&A, you will recognise the quintessential challenge which an acquirer faces in dealing with this individual. The facts are relatively straightforward:
Accepting this as the status quo is in my opinion a mistake, particularly in cases where the CEO concerned has played a key role in the development of the business, leading to its sale and continues to be valued by the employee base. He is likely to have been involved in the hiring, mentoring, and career development of key people, notably his / her direct reports, who will be important in the integration process. He / she will have had an impact on the culture of the organisation in the way that decisions are made, where autonomy sits in the corporate hierarchy, what level of risk appetite exists and perhaps in the flow of information around the business. He / she will have had a role to play in the informal organisational structure, where the key influencers sit and how they interact. Now, without doubt, having him / her around can be more than awkward for the incoming CEO. There is the potential for a disruptive influence, for a lack of clarity around who the ultimate decision maker is, perhaps even for the creation of some kind of corporate terrorist who will actively undermine the new direction of the business. There is also the possibility that he / she does not want to be involved in the next stage of the company’s development. Clearly these are all unacceptable and need to be dealt with quickly. However, let me create an alternative scenario. Let’s consider the role that this person could play given their unusual position in the merging organisation and with the appropriate good will:
And in return for these important actions, a compensation structure which is firmly linked to some initial KPIs around key employee and customer novation / retention, effectiveness of communication flows, and perhaps stability of revenue / cost post completion. I read in the FT and indeed many of my colleagues are suggesting that there is an upturn again in the deal volume being experienced. Having spent 14 years consulting in this arena, it would be great if we could finally move away from the cycle of value destruction and find some new solutions to an old problem. Using the insight, relationships and knowledge of an exiting CEO might be a small step in the right direction.
How is it acceptable to assume is that the productivity of our people stays constant in periods of intense change / stress? Everything in life is relative. If you question a 5 year old about how successful an activity was, they will give you a relative answer…”it was good but not as / better than good as the last one I did.” And when you ask the question why (if […]
With apologies for a slightly introverted blog, I wanted to raise an interesting issue which has been raised by three people this week who’ve somehow stumbled upon this random collection of thoughts and ideas in the last week. It appears that what people like most about this blog is the candour and openness of the commentary. Why is it so difficult these days to give an honest opinion without fear […]
For many of us and indeed for many of my clients, the activities of global functional leadership can be a source of frustration and occasionally extreme irritation. That’s not to say that the individuals within those functions are not performing to the best of their ability and don’t have all the right intentions for the business. Indeed one might say that to have reached that position requires talent, a strong network and […]
Now before you all bombard my blog site with death threats, this is not going to be a diatribe against the qualifications which are prevalent in the arena of programme and project management. I fully accept that these have a place and a value, and for someone starting out in the world of complex programme / project management, having the confidence of this type of certificate is clearly important and […]
For several years, I’ve been drawing the same picture…the one which illustrates that the percentage of a company’s activities related to business as usual versus that related to what I call ‘special projects’ has been changing over the past ten years, in favour of the latter. By special projects I mean: mergers and acquisitions joint ventures new product launches new territories expansion significant change in strategy and subsequent implementation requirement […]
The nature of the office workplace has changed almost beyond recognition in the last 30 years. The pace of change in terms of activity, responsibility, speed of communication, access to information and people, and complexity of the ‘transaction’ whatever the company might be engaged in, are all vastly different. Gone are vast numbers of manual tasks and with them activities and roles in the workplace. What is required these days […]
I’ve been on a few flights this week and beyond catching up with my favourite shows on the BBC iPlayer (!), the article penned by Malcolm Henry which I reposted last week, seems to be having a disturbing effect on me! Malcolm was describing the debate in Scotland as to the establishment of a bill of rights and his proposition that a bill of obligations would be much more powerful. […]
Two interesting moments this week: I was asked by a client to work with his team to help them understand what it is to become consultants. Interesting mandate and many might say, why on earth would you want to do that? A powerful debate with a fellow consultant around the challenge behind being both a subject matter expert and a consultant. In preparing something for the first of these challenges, […]
Article from the FT today.. “Basing more of the fee on work done is a good start Imagine that, upon arrival at the doctor’s office, you are told that you will be charged in a new way: only if major surgery is required. At the end of your examination, you are assured that only a quadruple bypass will save you. What then? You storm out, never to return, of course. […]
Three truths about communication which are accepted by most: Non-verbal communication constitutes 70-80% of the message (tone and body language to be precise). Human beings are extraordinarily good at perceiving that which is authentic and that which is not. Leaders lead through the power of their communication capability. Every project manager I’ve ever met, when asked about the core skill required that distinguishes the average from the exceptional in their […]
Many years ago when I first started consulting, my wife said to me, “make sure you continue to speak English, if its your single contribution to your profession that you do this, it will have been a career worth having!” It’s an extraordinary thing that we seem to delight in, coming up with language which is so nebulous as if the sole purpose is to confuse rather than clarify! Maybe […]
Inarticulate ramblings of a management consultant 