Inarticulate ramblings of a management consultant

the day to day experiences of a consultant operating in weird and wonderful client situations

Tag Archive for ‘culture’

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Where does effective post acquisition integration start? In the boardroom or on the office floor…

One of my reading obsessions for the last couple of years has been the subject of behavioural economics. A key finding (from the psychology arm of the science) is the concept of ‘unconscious bias’;  the idea that despite the contention from a rational perspective that we are not biased, the evidence suggests that we are influenced by colour and race in our decisions and inclinations. There’s a good short video on […]

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Fixing the irrevocably broken – creating an organisational structure which can thrive in a world of disruptive innovation

With thanks to Toby Tester and following from my blog last week (click here to read it if you’ve unwittingly stumbled upon this random collection of thoughts), here is the exam question for the week: What does an ideal organisational structure look like to cope with the challenges of today’s working environment? Let me first try and define what I envisage as an ‘ideal’ structure with a series of questions: […]

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The real impact of disruptive innovation – fundamentally changing the future structure of organisations

Disruption is the new buzz word in business these days. There are still some organisations and sectors which resist the concept that, somewhere, in the minds of a consumer or an employee, there is an idea which will change their industry for ever….but largely, there is a surface level of acceptance. The real change behind disruption however is much more subtle, disturbing and has the potential to change the corporate […]

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How would you approach change if employees were given a vote?

A few years ago I was involved in the merger of two UK law firms, one with a focus on London as its main operating base, the other more regional in its operations.  One of the conditions for the deal to go through was 100% approval by the partners. In terms of numbers, we were talking about 124 people. Imagine having a hurdle in a project where, before any implementation […]

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Acquisition in an emerging market – integrating the ‘ways of working’ – an exercise in futility?

The final instalment of this series of blogs, from the perspective of a mythical CEO of a family owned business being acquired by a multinational corporate. It is based on my experience of deals across Asia and is not specific to one particular transaction. If you’d like to read the previous parts (which may make sense as they’re written in chronological order), you can access them here – Due diligence, […]

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An acquisition in an emerging market from the perspective of the acquired CEO – two steps forward?

By popular demand (from the exclusive few that appear to read this blog), this is part 3 of a series based on the experience on a fictional CEO in an emerging market going through an acquisition by a multinational corporate. If you’ve wondered onto this blog by accident, firstly, my sympathies and secondly, it may make some sense to read them in the order that they’ve been written. The link […]

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Due diligence in an emerging market – the management interviews – lots of communication, perhaps less understanding!

Last week I explored the challenges of doing diligence on a fictitious family owned business based in Indonesia, from the perspective of the CEO (the link is here if you missed it). This week, let’s have a playful look at the next stage in the process…the management interviews, again from the perspective of the CEO of the business being acquired. This is the accumulation of a number of my experiences […]

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Considering culture as part of post acquisition integration – ‘nice to have’ or something more?

Anyone who has spent any time managing a post acquisition integration will recognise that culture is a, and in many cases, the critical factor which can determine success or failure. This is not something new…and yet it still comes as a surprise for many acquirers. Despite this widespread knowledge, much confusion still reigns around what cultural dimensions to consider, how to find them and measure them, and then most importantly, […]

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Passive adoption of regulatory change – the dangers of outsourcing your ‘conscience’ to the compliance function

Many of you will have read Daniel Kahneman’s excellent book, ‘Thinking Fast and Slow’ (attached link for a TED summary), or perhaps some of the other behavioural economics books such as ‘Nudge’ by Cass Sunstein and Richard Thaler. Some of you will also have read ‘The Social Animal’ by David Brooks. Perhaps you will also be aware of Rory Sutherland and his superb TED talks (see attached for my favourite) […]

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What’s the big deal with hostile transactions?

The flow of transactions has been noted in this blog and throughout the financial press. In addition, the FT led an article earlier this week noting the volume of hostile deals (US appetite for hostile takeovers hits post-crisis high) as the M&A market heats up. I want to address in this some of the key challenges that distinguish hostile from friendly transactions. From my perspective, they fall broadly into 4 […]

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A new breed / identity of buyer from Asia – leading to a different result?

Fascinating times in the mergers and acquisitions market place with the number and size of the transactions unprecedented since 2007…a remarkable turnaround. What is most interesting is that for the first time in a while, the objective external observer can compare and contrast two very different types of buyers: The corporate European and American buyer whose motivation to do deals has been driven by the following factors: An unprecedented (at least […]

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The big myth in post acquisition integration

If there’s one consistent message that I’ve heard over the last 15 years of doing post acquisition integration, it’s this:  Big deals are more difficult to integrate than small ones  Whether it’s the investment bankers / accountants / lawyers / consultants or Heads of Corporate Strategy, this message is probably the one thing that everyone agrees on. Complexity is directly correlated with size…for the following reasons: More people requiring more effort […]

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‘Practice makes perfect’ – a model of implementing change

Last week I wrote about the interesting interaction between these three dimensions as three different strategies for implementing change. This week I want to write one particular model of implementation, which I’ve called the ‘Practice makes perfect’ model. As you may remember, the traditional method (in a Western context) looks like this: Let’s now think about some variations on this theme, and in particular what to do when you come across a […]

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More evidence of the link between culture and M&A success

Many of you will already be aware of my focus on culture in M&A and it seems that it’s becoming more mainstream to talk about these matters.. Note the recent commentary in the FT on Holcim and Lafarge which tries to downplay the cultural dimensions…perhaps part of the problem is a blind acceptance in the media around business case as opposed to delivery capability! http://www.ft.com/cms/s/3/d1cc9938-cbec-11e4-beca-00144feab7de.html#axzz3UcoE3fgH The article below is a […]

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Policy, process and practice – the three dimensions of implementation (1)

I’m working with a client on a transaction in one of the larger markets in Asia. As often happens, the chance to work with some highly motivated and able individuals leads to some new ideas. Whilst in a team meeting, this model came to my mind and I wanted to share it with you. The challenge for any organisation in an acquisition is to understand what the triggers / levers […]

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The bad news about deals….they expose structural weaknesses when everyone’s looking!

I’ve always thought about transactions as being quite different complex transformations from the ‘business as usual’ activities. There’s been a train of thought for a number of years which looks to create separate governance, resources, processes and methodology in post-acquisition integration. This is based on the requirement for different skill sets and the potential for distraction from the ongoing business. As we enter a period of increased M&A activity again, […]

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We need to stop talking about winners and losers in deals

One of the challenges for an aspiring CEO and his / her integration director is a recognition that M&A is not like some kind of military battle or occupation! Thinking of M&A in these terms is not accurate nor is it helpful. Sadly, if you look at the commentary around deals, from the press and often internally in the acquirer, you will find expressions like the following:  Hostile takeovers Market […]

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Think like a theatre director – and become an excellent programme manager

It’s rare to see a connection between the world of performing arts and the world of programme and project management….until you start to look at people’s non work based cvs. At that point, you start to see an incredible richness of experience, talent and focus dedicated towards the arts. So the question for me is, are there some aspects of the performing arts which help develop or naturally lend themselves to the […]

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The perfect storm which has the potential to challenge the corporate world as we see it today

I have spent the last few days at the Symex Conference in Palembang, Sumatra, speaking and listening to a bunch of bright, articulate and challenging speakers. It has lead me to a conclusion about a significant challenge that corporates around the world face over the next few years….a convergence of issues or perfect storm which have the potential to change the corporate landscape as we know it. Let me set […]

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