In the traditional approach, an organizational structure is formed immediately upon closing the deal, and shortly thereafter, an announcement is made that names the executives who will fill the top 30–50 positions. Since the acquirer’s leadership team knows very little about the qualities of the acquiree’s management team, they make these decisions based on imperfect data: resumes, performance reviews, and politics. This not only may result in the wrong people retained, it also leaves employees feeling like merit doesn’t matter.
Next, highly visible duplications of systems are eliminated, including branch networks, brands and large suppliers. Integrating these elements into a single operating platform is supposed to capture most of the expected efficiencies, while further incremental efficiencies would be squeezed out over time. In reality, this leaves significant complexity and inefficiency deep in the organization. Successful acquisitions do not stop at the big system integrations.
Here is a better way to ensure a successful integration, and ultimately, uncover opportunities for new revenue.
In some cases, the acquirer has the best process; in others the acquiree has the best process, and many times, a new process must be created that leverages the new strengths of the combined entity. Getting these activities right is often essential for an acquisition to pay off.
Another benefit of joint teams is that as both sides work and make presentations together, a unified culture begins to form naturally.
Why only 100 days? Because short, intense, campaigns create urgency and focus.
CEOs who dive deeper for acquisition efficiencies, as well as missed revenue opportunities, add millions in earnings, reduce complexity, and increase employee engagement. They also reinforce a culture of “one company” going forward.
Johnson Controls CEO Oliver has led a corporate transformation focused on making buildings greener.
In this edition of our Corporate Competitor Podcast, leadership speaker and storytelling expert Don Yaeger…
Boards are being held to a higher standard regarding risk. A more thorough strategy may…
If you're experiencing burnout not because you're overworked, but because you're underinspired, it might be…
When companies elevate the role, they reap significant benefits. Here are five critical ways it…
CEO Ball has led early decoupling from China and diversification that ties into today’s infrastructure…