Managing the People Side of M&A - CWC 20160103

Managing the People Side of M&A

• Provide an overview of the four phases of an M&A integration

• Define M&A best practices• Answer questions about how to

minimize performance risk and people disruption

OBJECTIVES

• Volatile• Uncertain• Complex• Ambiguous

OUR REALITY

• Volatile• Uncertain• Complex• Ambiguous

OUR REALITYPRINCIPLES

• Transparency• Consistency• Engagement• Measurement

ORGANIZATIONAL CHANGE

A structured approach to transitioning to new ways of thinking and behaving to achieve defined results.—Prosci

• Change Management begins after the deal is completed

• Acquiring company feels superior to the acquired one (talent, capability, culture, process, technology)

• Acquired talent is not engaged in designing the new organization

• Synergies are quickly realized without deep knowledge of talent

• Cultures are assumed to be similar

COMMON MISTAKES

• VISION Different, better and compelling?

• LEADERS Personally committed?

• CAPACITY Skill, money and time?

• CULTURE Can they change enough?

• OUTCOMES Realistic given business environment?

MANAGING KEY VARIABLES

4 PHASES OF INTEGRATION

Figuring it Out

Planning for Change

Managing Change

Making it Stick

PHASE 1: FIGURING IT OUT

Figuring It Out

Planning for Change

Managing Change

Making It Stick

FIGURING IT OUT

Understanding the degree of change for and risks to integration:

• Leadership capabilities• Cultural alignment• Talent identification and

retention

PHASE 2: PLANNING FOR CHANGE

Figuring It Out

Planning for Change

Managing Change

Making It Stick

PLANNING FOR CHANGE

Creating an integration plan outlining what needs to happen, by when and by whom:

• Integration principles• Organization design and

resourcing• Policy and program

harmonization

PHASE 3: MANAGING CHANGE

Figuring It Out

Planning for Change

Managing Change

Making It Stick

MANAGING CHANGE

Maintaining momentum while managing the dynamics of the integration:

• Execute• Monitor• Course-correct

PHASE 4: MAKING IT STICK

Figuring It Out

Planningfor Change

Managing Change

Making It Stick

MAKING IT STICK

Embed the business and cultural changes into regular operations:

• Ownership• Measurement• Review

• 25 years of change management experience

• 32 major change initiatives across 60 countries

• Author of Change with Confidence Answers to the 50 Biggest Questions that Keep Change Leaders Up at Night

Email: phil@changewithconfidence.com

Tel: +1 416.710.3685

Twitter: philbuckley01

Site: changewithconfidence.com

About the Author, Phil Buckley