Context

The increased trend of more frequent merger & acquisitions has pushed companies to develop repeatable models for successful integration and to ensure the primary value of the transaction is not missed. Well-conceived and properly executed integration models can deliver greater value and reduce the common pitfalls of post-merger integration such as missed targets, loss of key people and poor performance of the base business. Often the “soft” issues such as culture integration are forgotten, with focus being more on the financial aspects of the acquisition itself rather than the successful integration of the two companies. This can lead to loss of key people, conflict and ineffective integration. Change management can assist organisations in improving the transition process, post-merger integration and culture alignment during merger & acquisitions.

Snap Stats

• Target Company: 3,200 employees
• Acquiring Company: 40,000 employees
• Roll-out Duration: 1 year
• Change Management Duration: 4 months
• Size of Change: Medium scale
• Change Management Resourcing: Executive Change Consultant, Change Consultant., Graphic Designer

The Results

• Information sharing: 100%
• Satisfaction with information provided: 85%
• Satisfaction with issues addressed: 92%
• Alignment to the vision
• New structure & roles filled
• Integrated decision framework & internal employee brand established
• Structure & systems stabilised
• Management reporting integrated
• Accounting standards aligned & training completed
• Processes streamlined
• Training need analysis done
• IT infrastructure & policies Processes standardised &training completed
• Revenue protection plan defined & measurable tracking system implemented

The Approach

The Triple A model was used to create awareness, acceptance and adoption of the change. This was achieved through:

• Executive engagement
• Building awareness
• Equipping leaders as leaders of change
• Change management for:
  • Integrated structure and roles
  • Finance system and processes
  • Changes to the payroll system
  • Changes to operational processes
  • Change of the corporate brand
  • Retention of key talent
  • Customer and supplier satisfaction
  • Revised performance contracts

Lessons from the Frontline

• Move to one brand early on
• Work closely with target co. Executives to ensure alignment
• Have a structured approach to creating awareness and getting buy-in from target co. clients
• Have a structured approach for monitoring and measuring targets to ensure the primary value of the acquisition is realised

Testimonial

We employed CF to assist with the Change Management component of the integration of a business acquired by ourselves. It was particularly challenging because it involved integrating a Family business with a Corporate business.

ChangeFolio is very competent in:

• Understanding our needs and defining the required scope of their involvement;
• Executing their role in the project according to a well-structured methodology which made use of appropriate tools and techniques;
• Highlighting risk areas and recommending and implementing the associated mitigation actions;
• Providing regular feedback on progress & issues;
• Managing project costs within the agreed values

ChangeFolio is a very professionally
run and capable consulting firm.

– CEO

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