1. Behavioral Strategies and Methods Necessary for Merger & Acquisition Success

2. Rationale 10- 15 years ago 58% of M&A’s did not add value (Wall Street Journal, Oct 12, 1998) Today there is a 50/50 chance of a M&A’s adding value (Joel Rose & Associates 2011) Conclusion: Successful M&A’s require more than financial engineering and legal expertise--- they require behavioral execution through each phase of the M&A process.

3. The 5 Phases of M&A Success

4. During Phase 1 and 2 Consider the organizations’ differences, values, and challenges. Initial Interviews: Interviewing every individual partner provides insight into their concerns and fears about the merger. The results of the interviews are shared with the Merger Committee without reference to the individuals who expressed the concerns. The purpose is to identify key issues that create cultural and leadership resistance.

5. During Phase 1 and 2 Consider the organizations’ differences, values, and challenges. (cont.) Cultural Discovery Baselines: What is the baseline of the respective organizations regarding issues like leader-member exchange, credibility, perceived support, and procedural justice? Determine their strengths and develop plans for opportunities.

6. During Phase 1 and 2 Consider the organizations’ differences, values, and challenges. (cont.) Leadership Practices Review: Examine existing information regarding individual leadership practices (e.g., review 360’s, action plans for leadership development, etc.). Alternatively, provide key leadership diagnostic tools to access these.

7. During Phase 1 and 2 Plan and facilitate retreats and other key meetings. Work with partners and other key leaders to pinpoint leadership behaviors needed to create success. Facilitate discussions to achieve consensus on communication. Identify current and anticipated needs and describe how successful firms deal with them.

8. During Phase 1 and 2 Plan and facilitate retreats and other key meetings. (cont.) Recommend strategies for improving integration of organizational cultural practices tailored to your M&A needs. Determine critical cultural and leadership information needed to provide follow-up reports through each stage of the M&A process.

9. During Phase 3 and 4 Consider how to create a common vision and a shared future. Consider how to build early momentum. Work with alignment teams to identify key behaviors needed by the merging entities. Coach the key behaviors necessary for leaders to role model at every level.

10. During Phase 3 and 4 Consider how to create a common vision and a shared future. Consider how to build early momentum. (cont.) Coach leaders to communicate the vision of the type of environment the performers will operate within. Establish what you are looking for in order to obtain short term wins.

11. During Phase 5 Consider how to adjust in the future to sustain cultural momentum. Teach behavioral leadership skills needed to impact the organizations’ cultural opportunities that could influence key performance outcomes. Coach leaders on support behaviors for long-term sustainability. Examine the need for renewed team building with the new organizational structure.