Mergers represent opportunities for unconventional growth. However, mergers often fail to achieve the desired objectives regarding synergistic value creation and profitability as well as improvement in organizational effectiveness and efficiency.
Many organizations do not have an experienced team in house to deliver on the promise of the merger value proposition. The challenge becomes bringing the merger leadership team up to speed quickly, with the correct vision, approach, practices and understanding of risks to ensure success in both time and synergy realization.
Inteq’s five Merger Integration workshops form a cohesive strategic approach to merger execution and are specifically designed to provide your merger leadership teams with the knowledge and tools necessary to achieve the specific objectives of the merger within the timeline necessary. The workshops are customizable to address the specific scale and complexity of the merger.
Research indicates that more than 50% of merger integrations fail to deliver a positive return on value. Integrations that deliver positive value often fail to meet leadership’s stated value objectives. Thorough preparation for integration is foundational to optimizing the value and time-to-value of the integration.
It’s essential that the integration team, prior to closing the “deal”, establish the appropriate integration strategy and guiding principles for the integration, identify the value drivers and metrics for success, address key strategic questions and identify the vision for the completed integration.
Workshop participants work together with the Inteq team to:
The workshop is designed for decision makers responsible for leading the post-merger integration as well as functional personnel within each layer of the organization who are expected to play a key part in the integration. For example, a workshop could include the organization's C-level and senior leadership team, or divisional/business unit leadership and management, or functional/department management along with those individuals selected to work within an Integration Management Office framework.
Each layer has different roles, responsibilities, objectives, and risks with respect to integration planning and execution. Each workshop is tailored to the specific organization and to the organizational layer represented by the participants.
Effective governance involves establishing the appropriate team structures and protocols so that the right people are involved at the right times, in the right sequence, provide the right information, achieve the right goals - as opposed to teams operating independently of one another and often at strategic cross-purposes.
Given the considerable value that organizations place on mergers and acquisitions an integration is not the time to risk the financial, operational and brand health of the organization. To bring order to what would otherwise be disorder and chaos, the workshop creates a clear hierarchy for the integration effort which enables efficient and effective coordination and collaboration towards a common vision.
Workshop participants work together with the Inteq team to:
Participants from the Positioning the Integration Team for Success workshop plus any additional stakeholders that can provide additional insight into appropriate governance structures and integration scope.
There are many risks associated with merger integration that will be discussed and analyzed in this workshop. Leadership is typically most concerned with future financial performance, future operational performance, key personnel and customer retention, and potential cultural risks and conflict.
Organizational culture and cultural change are particularly challenging. Critical cultural change issues must be addressed head on – quickly and clearly. No tiptoeing or equivocating on this one!
Workshop participants work together with the Inteq team to:
Participants from the Create Governance Structure and Define Integration Scope workshop plus any additional stakeholders that can provide additional insight into expected integration risks and cultural integration concerns.
Planning for and executing communications regarding mergers and merger integration is essential on every level. Mergers are a fast-moving, fast-breaking story. Every day brings new developments.
The messaging, communication channel(s) and timing needs to be “right.” Failure to get the communications "right" can lead directly to an organization's inability to retain key personnel, maintain staff morale necessary to ensure future success and keep the up momentum required for integration success.
“Truth” is a moving target and often obsolete when communicated. A well-crafted communication plan combined with proper execution of the plan reduces staff anxiety and cynicism and maintains leadership’s credibility.
Rumors fly as soon as people pick up the first subtle vibe that a merger is in the works. This is high drama. Everybody has an opinion and all the rules of gossip prevail. Everyone wants to know “how does this impact me.”
In this tense environment it is easy for messages to be misinterpreted, twisted and/or exaggerated. Gaps in communication are interpreted and individually filled in by staff affected by the merger – often based on the most negative assumptions and scenarios.
Communication planning requires much more thought in a merger than it does during more stable, less stressful circumstances. Yet most key managers receive little education regarding what to say, how to say it and what not to say.
Practically everything that is communicated is taken seriously, studied for innuendo, or held up to the light for subtle implications. Many merger integration problems trace back to communication problems.
Workshop Key Activities and Deliverables
Participants from the Assessing Risk workshop plus any additional stakeholders that can provide additional insight into your organization's communications, staffing and retention needs.
A merger integration plan outlines how and when major resources, assets and processes of the acquiring and acquired companies will be combined to achieve the goals of the deal.
The workshop applies a proven best practice integration planning methodology (playbook) to clearly define and provide visibility to the integration steps and activities.
A clear, carefully crafted integration plan helps align expectations, validates that the work ahead is logical and achievable, and transforms staff skepticism to optimism.
Workshop participants work together with the Inteq team to:
Participants from the Developing Communications, Staffing and Retention Plans workshop plus any additional stakeholders that can provide additional insight into your organization's overall integration effort and synergy expectations.
