Transitions acquisitions-change


Published on

Published in: Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Transitions acquisitions-change

  1. 1. Transitions - Acquisitions Change Ralph Lassiter Fighting the Urgency Addiction Training & Organizational Development
  2. 2. Guess What? However, I will share . . . Reasons for acquisitions Current Integration process Approach to managing change Measurement process Lessons Learned Continuing issues . . .
  3. 3. HDR’s Strategic Goal is to be . . . One Great Sustainable Company Return on A Legacy Firm Shareholders’ Investment
  4. 4. Four Themes Drive Our Strategies A Legacy Firm Employer Organization Consultant Investment One Great Sustainable of Choice of Choice of Choice of Choice Company Return on Shareholders’ Investment • Acquisitions is at the core of HDR’s growth strategy. • Acquired firms close gaps in geographic presence or service lines
  5. 5. 32 Firms Acquired in past 10 years 8 8 7 6 6 5 5 4 3 3 2 2 2 2 2 1 1 1 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
  6. 6. Average Employee Population per Firm (Range: 10 – 159 Overall Ave: 48) 100 90 80 70 60 50 40 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
  7. 7. Our Acquisition Process is fairly typical Integration Business Leader Process Recommends Begins Target Management Document Signing Team Makes & Go/No Go Announcement to Staff Decision Final Decision Due Diligence Made Conducted • Acquisition Manager • Business Champion • Finance Manager • HR Representative
  8. 8. We’re still taking baby steps with our Integration Process 1. On-site Integration Manager Former operations leader Primary liaison & communications agent Guides integration process 2. Integration Checklist Designed by T&OD Schedule-specific activities Completed during change management training 3. Change Management Training for Leaders (1 day wksp) Immediately following deal signing Focus is understanding and applying key principles 4. Change Participation Training for Employees (1.2 hr mtg) Focus is seeing the silver lining & participation in the integration process
  9. 9. Key message for leaders – “Making the deal is a warm-up, the real job is making the deal work!” Mergers/Acquisitions start as Financial Proposition But become a Human Transaction Leaders must manage the transition of process, procedures, systems, etc, etc (CHANGE) Performance Consultants provide CM technical assistance Prosci certified ( Extensive tool box (templates, sample plans, forms, etc.)
  10. 10. Prosci’s research indicates that the greatest contributors to success . . . 1. Active and visible executive sponsorship 2. Buy-in from front-line managers and employees 3. Exceptional project team 4. Continuous and targeted communication 5. Well planned and organized approach Source: 2006 Prosci Research Report
  11. 11. Our experience indicates . . . Build leader change management competency IMMEDIATELY!! Develop a CM Plan with involvement from leadership team (HDR & acquired firm) Over communicate with all key stakeholders Integration manager on the ground from the beginning Integrate CM activities within reoccurring management activities CM or Integration is a regular management team agenda item
  12. 12. Tendency is to apply CM as an after thought . . 1st acquisition: 80+ employees No Change Management Business 5 original employees retained, 5 processes years later Change management process
  13. 13. Integrating CM, from the beginning, generates significant returns . . . 1 Year Post Acquisition Measurement indicates that CM integration Increases: • Productivity • Service & Deliverable Quality • Client Satisfaction • Morale - Less employee resistance • Profitability Business • Organizational Change Competency improvement process Change management process
  14. 14. CM Training introduces the Risk and Flight Model Turnover of valued employees Risk / flight Tangible customer impact Increasing fear and resistance Active resistance degree Productivity loss Worry / uncertainty Employee dissatisfaction Passive resistance time Normal work environment Comfort / security Time 1st communication or 1st rumor © Prosci
  15. 15. Transition Performance Curve Leaders’ Goal with CM: • Minimize Magnitude of Performance Drop • Minimize Length of Performance Drop Future Performance Current (t) Performance (d) Time
  16. 16. Change Principles – In Summary Communicate – Communicate - Communicate Seek input - Encourage Questions & Opinions Don’t Be Afraid to Seek or Share Bad News Being Well Informed Reduces Concern & Resistance Anxiety caused by Change is Natural & Inevitable Managers & Employees React to Change Similarly Build Desire – Business & Personal Change Reasons Successful Change is an On-going Process Requires Everyone Takes Planning & Time. Problems will Occur, Even with the Best Planning Be Patient, But Proceed with a Sense of Urgency
  17. 17. Communication is Critical Most merger integration problems rooted in communication issues Communication problems Lead to Productivity problems Lead to Morale problems lead to Profitability problems “I don’t understand how these changes affect me!”
  18. 18. Develop a Communications Plan Start communication effort ASAP Communicate frequently Use face-to-face methods primarily Provide regular, written acquisition updates Address impact on employees Seek bad news Provide avenue for employees to ask questions All managers should practice MBWA Regular communications from senior manager
  19. 19. ADKAR is introduced as primary CM tool ADKAR consists of five phases that occur when change impacts us: Awareness of the need for change (why). Desire to support and participate in the change (our choice). Knowledge about how to change (the learning process). Ability to implement the change (turning knowledge into action). Reinforcement to sustain the change (celebrating success).
  20. 20. With non-managers, the goal is to have them participate in change, not perceive selves as victims Ask questions and make recommendations Help solve problems, support your co-workers and remain results oriented. Avoid public support and private criticism of change; instead discuss concerns openly Take advantage of opportunities to grow professionally.
  21. 21. Change can feel like a jump into the unknown – bringing fear, anxiety, anger and confusion. You may ask . . . “Why am I doing this?” “Will it be easy & painless?” “Or difficult & scary?” Finally . . . “Where & how will I land ?!?”
  22. 22. Once you leave behind what is known and safe, you’ll find yourself in a place of ambiguity and disorientation – The Neutral Zone You may have no control over your environment, But, you do have control over your response to the environment!
  23. 23. Key Principle The actual impact of each change on you is directly related to how you react to the change. .
  24. 24. Build & Maintain Your Resilience Anticipate change Take care of yourself Train for change Use a wide angle lens Learn from the past Ask advice from veterans Be flexible Know & use available resources
  25. 25. Lessons Learned – Continuing Issues Never a good reason to not build CM competency Integration management is a full-time assignment Due diligence should include culture assessment Toughest call: Good deal financially but poor culture fit Assessment is 1 year post-acquisition Measure Morale-Engagement sooner The BIG One! (400-500 employee firm) – Yikes!!
  26. 26. Transitions - Acquisitions Change Ralph Lassiter Fighting the Urgency Addiction Training & Organizational Development