The document outlines recommendations for a transition plan to manage the acquisition of Company B by Company A. It provides 7 key recommendations: 1) Operate Company B as a separate profit center to track performance and allow for future divestment. 2) Maintain Company B's compensation for 2 years while offering bonuses for achievement of objectives. 3) Implement a no-layoff policy for 2 years except for cause. 4) Initiate robust communication strategies to engage employees and families. 5) Form a transition team to oversee implementation of the plan. 6) Conduct a process review to revise procedures for post-acquisition objectives. 7) Design a management training program to educate managers on new philosophies, roles, and processes. The transition
Energy Consulting SDVOSB Transition Mnagementgasanden
This scenario recaps possibly the most challenging and far-reaching example of Link’s transition
management capabilities - - sometimes referred to as managing a whitewater transition.
Organizational transitions are often precipitated by mergers, acquisitions, organizational
restructurings, financial distress, or startup. Whereas change management typically focuses on
creating change in an organization, transition management strives to optimally control and
manage that is inevitably occurring.
Energy Consulting SDVOSB Merger Acquisition Planninggasanden
Planning for mergers or acquisitions involves a host of activities that Link refers to as Transtion
Planning. Transitions are typically fraught with great risk but also ripe with opportunity. For
example, although the majority of executives will acknowledge, and even expound upon, the
potential risks inherent in mergers, few actually develop and execute an adequate strategy and
detailed plan that ensures attainment of the benefits that originally justified the merger. This is
not because of lack of intent, commitment, or skill of the senior executive, but rather due to
his/her over-dependence and over-confidence in the management team. The simple fact is that
the vast majority of management teams are not experienced in managing transitions and often
due not place transition management at the top of their priority list - - and if they are experienced,
the approach among managers is likely different. There is also the likelihood that the
management team is not immune to the insecurity, uncertainty, political infighting, and
cultural/process upheavals - - and can not be expected to carry out obligations in the ideal
manner expected by the CEO.
Energy Consulting SDVOSB Human Capital Mmanagementgasanden
Link’s confidentiality policies for current and recent clients prohibit us from releasing clientspecific
information. The following Human Capital Management Scenario should thus be
considered representative of services that could be provided to support a spectrum of client
circumstances.
The Applications section at the end of this document addresses how Link’s HCM practice can be
applied to alternative scenarios.
Performance Measurement in NGOs is a challenging task as they have both business and social obligations to meet. Traditional accounting measures may not suffice to capture and benchmark growth and other challenges of NGOs. In this paper, we enumerate some key performance measures that could be used by some practitioners.
Driving Performance Through Enhanced Collaboration between HR and Finance.
Effective working relationships across functions — particularly HR and Finance — have traditionally eluded many organizations. A siloed approach won’t work in the future.
Energy Consulting SDVOSB Transition Mnagementgasanden
This scenario recaps possibly the most challenging and far-reaching example of Link’s transition
management capabilities - - sometimes referred to as managing a whitewater transition.
Organizational transitions are often precipitated by mergers, acquisitions, organizational
restructurings, financial distress, or startup. Whereas change management typically focuses on
creating change in an organization, transition management strives to optimally control and
manage that is inevitably occurring.
Energy Consulting SDVOSB Merger Acquisition Planninggasanden
Planning for mergers or acquisitions involves a host of activities that Link refers to as Transtion
Planning. Transitions are typically fraught with great risk but also ripe with opportunity. For
example, although the majority of executives will acknowledge, and even expound upon, the
potential risks inherent in mergers, few actually develop and execute an adequate strategy and
detailed plan that ensures attainment of the benefits that originally justified the merger. This is
not because of lack of intent, commitment, or skill of the senior executive, but rather due to
his/her over-dependence and over-confidence in the management team. The simple fact is that
the vast majority of management teams are not experienced in managing transitions and often
due not place transition management at the top of their priority list - - and if they are experienced,
the approach among managers is likely different. There is also the likelihood that the
management team is not immune to the insecurity, uncertainty, political infighting, and
cultural/process upheavals - - and can not be expected to carry out obligations in the ideal
manner expected by the CEO.
Energy Consulting SDVOSB Human Capital Mmanagementgasanden
Link’s confidentiality policies for current and recent clients prohibit us from releasing clientspecific
information. The following Human Capital Management Scenario should thus be
considered representative of services that could be provided to support a spectrum of client
circumstances.
The Applications section at the end of this document addresses how Link’s HCM practice can be
applied to alternative scenarios.
Performance Measurement in NGOs is a challenging task as they have both business and social obligations to meet. Traditional accounting measures may not suffice to capture and benchmark growth and other challenges of NGOs. In this paper, we enumerate some key performance measures that could be used by some practitioners.
Driving Performance Through Enhanced Collaboration between HR and Finance.
Effective working relationships across functions — particularly HR and Finance — have traditionally eluded many organizations. A siloed approach won’t work in the future.
The changing face of reward examines how the business drivers of reward are changing due to the impact of the global downturn and other macroeconomic trends in the global economy.
Companies realize without emotional commitment, even the most brilliant strategies will fail. To attain any change, people must not only accept and agree with the strategy, they must buy into it. In this paper, Browne & Mohan consultant share a six stage empirical model of commitment buy-in.
Energy Consulting SDVOSB Human Capital Managementnatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Biofuel Experiencenatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Transition Managementnatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
The changing face of reward examines how the business drivers of reward are changing due to the impact of the global downturn and other macroeconomic trends in the global economy.
Companies realize without emotional commitment, even the most brilliant strategies will fail. To attain any change, people must not only accept and agree with the strategy, they must buy into it. In this paper, Browne & Mohan consultant share a six stage empirical model of commitment buy-in.
Energy Consulting SDVOSB Human Capital Managementnatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Biofuel Experiencenatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Transition Managementnatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Capability Statement Corporatenatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Merger Acquisition Planningnatalyabelmont
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!"
Energy Consulting SDVOSB Merger Acquisition PlanningLink Resources
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!
Energy Consulting SDVOSB Human Capital ManagementLink Resources
Link Resources: providing Energy Consulting, Management, Operations and Maintenance services across Fossil, Nuclear, and Bio Energy power plants globally. No SDVOSB has our energy credentials or competencies!
COVID-19 — Managing executive pay and incentives in unceCruzIbarra161
COVID-19 —
Managing executive
pay and incentives
in uncertain times
COVID-19 — Managing executive pay and incentives in uncertain times 2
In a matter of three months, COVID-19
has rapidly transformed from a local
virus outbreak to a global pandemic.
While the stress it has put on society
at large and healthcare systems
around the world is unprecedented,
it has also almost brought the global
economy to a grinding halt.
This slowdown is likely to be prolonged, and given the
scale and severity, businesses need to adapt quickly. In the
short term, organizations will need to adopt some cost-
containment measures, and rethink their cash flows and
working capital requirements.
An important piece of the jigsaw for organizations from
this perspective is remuneration. Often constituting one
of the largest “controllable” costs, organizations need to
undertake careful planning to retain, reward and motivate
employees through this crisis.
Extraordinary times demand extraordinary measures
In response to the COVID-19 crisis, several companies
in Singapore, and around the globe, are already
implementing executive pay reductions in the form of
salary freezes and voluntary pay cuts or reduction and
deferral of bonuses. These include Marriott, Lyft, BT,
Santader, Singtel, SATS, SP Group, Singapore Airlines and
Temasek Holdings, among others.
While the overall financial impact of executive pay cuts on
the company’s bottom line is likely to be limited, such cuts
are critical from a leadership, perception and messaging
perspective. At a time when share prices are plunging and
as companies may need to consider headcount reductions,
executives cannot be seen as financially insulated.
From a remuneration standpoint, however, most senior
executives are paid significant proportions of their total
compensation through performance-linked variable pay
awards — both cash and equity. These awards are bound to
be dramatically affected by the slowdown.
To put this in perspective, senior executives in Singapore
typically receive between 40% and 70% of their total pay in
performance-linked incentives, up to half of which could be
in long-term, equity-based vehicles. In comparison, most
other employees only receive between 10% and 20% of their
total pay in incentives — usually as annual cash bonuses.
It ’s now become critical for organizations to effectively
navigate and manage variable pay components by trying
to balance the affordability aspects with fairness to ensure
that motivation and productivity levels do not drop —
which can arguably have a major enduring impact on
business performance.
COVID-19 — Managing executive pay and incentives in uncertain times 3
What can boards and remuneration committees do?
In Mercer’s discussions with multiple boards and
management teams over the past few weeks, we’ve
seen that a number of alternative approaches are being
considered with respect to variable compensation for ...
Pressures on margins are relentless. The need to reduce costs is constant. No business can afford to take its eyes off these fundamentals. For most companies the costs of employing people are greater than for any other single
resource. Effective management demands that managers strive for optimum performance at least cost.
Our approach to reward is based on this essential proposition. We focus on making certain that strategies for the pay and benefits of all employees are directed at adding value and are concentrated on the bottom line. This means the design and implementation of robust systems for pay that aim to reduce costs and achieve better returns from firms’ investment in people.
OBJECTIVES PHASE ONE STEP ONEFastCat is a small to medium s.docxhopeaustin33688
OBJECTIVES PHASE ONE STEP ONE:
FastCat is a small to medium sized company that provides medical software to healthcare establishments to assist them with the ease of accessing information for the office staff as well as their patients. Since FastCat is competing with much larger companies and the industry is experiencing increased demand due to government regulations they must be aware and fulfill their objectives to ensure success. FastCat must improve the flow of information and data reporting to be certain patients are receiving the correct treatment.
The first objective is to improve the care of patients and make sure that doctors and patients have the information they need when they need it. To do this they will need to focus on the patient-physician interface, provide web and mobile services, ensure the ease of communication between physicians and patients, provide privacy to users, and make their systems error free.
Supporting this objective is the objective to make sure they keep cost down; not only to help them increase revenue but to make their software affordable to customers. To help increase revenue FastCat will try to shave off or better train customers who are requiring a lot of resources and making the company little to no profit. Implementing training programs for medical staff,physicians, and patients will be important to make sure they know how to properly use the products on their own. This is also related to the company objective of efficiency. FastCat will try to move some of their support and manufacturing offshore in hopes to lower cost, but not quality. FastCat wants to be cautious that lowering cost will never lower quality or efficiency; two things they believe the company is established off of.
Keeping cost down for the customers will be extremely important in retaining current customers and acquiring new customers because the demand is increasing.
This leads me to another major objective of creating a competitive advantage that is sustainable. FastCat wants to offer their customers customized packages while their competitors only offer standard packages. Right now the demand is at its peak but when everything settles down FastCat hopes to have created an advantage that they can sustain and drive out competitors who entered the industry during the growth.
The HITECH Act provides FastCat with an incredible opportunity to grow their customer base and increase profits in a short period of time. In order for FastCat to compete in the health information technology boom, they need to attract many more quality employees to their company. With the $30 billion dollars the government is investing into the HITECH incentive program, Fastcat will be able to spend more on human capital, in order to keep future employees from going to other competing companies.
Another staple objective is the goal to grow the company. FastCat wants to acquire new customers as well as retain old ones. They hope to create new features a.
292018 Getting organizational redesign right McKinsey & Co.docxtamicawaysmith
2/9/2018 Getting organizational redesign right | McKinsey & Company
https://www.mckinsey.com/business-functions/organization/our-insights/getting-organizational-redesign-right 1/12
Article
June 2015
McKinsey Quarterly
Getting organizational redesign right
By Steven Aronowitz, Aaron De Smet, and Deirdre McGinty
“I
Companies will better integrate their people, processes, and
structures by following nine golden rules.
f at first you don’t succeed, try, try, try again.” If W. E. Hickson, the British
author known for popularizing that familiar proverb in the mid-19th century,
were alive today, he might easily be applying it (disparagingly) to the efforts of modern
corporations to redesign their organizations.
Recent McKinsey research surveying a large set of global executives suggests that many
companies, these days, are in a nearly permanent state of organizational flux. Almost 60
percent of the respondents, for example, told us they had experienced a redesign within
the past two years, and an additional 25 percent said they experienced a redesign three or
more years ago. A generation or two back, most executives might have experienced some
sort of organizational upheaval just a few times over the course of their careers.
One plausible explanation for this new flurry of activity is the accelerating pace of
strategic change driven by the disruption of industries. As a result, every time a company
switches direction, it alters the organization to deliver the hoped-for results. Rather than
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Organization
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https://www.mckinsey.com/our-people/aaron-de-smet
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https://www.mckinsey.com/business-functions/organization/our-insights
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small, incremental tweaks of the kind that might have been appropriate in the past,
today’s organizations often need regular shake-ups of the Big Bang variety.
Frustratingly, it also appears that the frequency of organizational redesign reflects a high
level of disappointment with the outcome. According to McKinsey’s research, less than a
quarter of organizational-redesign efforts succeed. Forty-four percent run out of steam
after getting under way, while a third fail to meet objectives or improve performance after
implementation.
The good news is that companies can do better—much better. In this article, we’ll
describe what we learned when we compared successful and unsuccessful organiza ...
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
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1. SCENARIO: TRANSITION PLANNING
PROLOGUE
This scenario recaps possibly the most challenging and far-reaching example of Link’s transition
planning and management capabilities - - sometimes referred to as managing a whitewater
transitioning. Organizational transitions are often precipitated by mergers, acquisitions,
organizational restructurings, financial distress, or startup. Whereas change management
typically focuses on creating change in an organization, transition management strives to
optimally control and manage that is inevitably occurring.
Transitions are typically fraught with great risk but also ripe with opportunity. For example,
although the majority of executives will acknowledge, and even expound upon, the potential risks
inherent in mergers, few actually develop and execute an adequate strategy and detailed plan
that ensures attainment of the benefits that originally justified the merger. This is not because of
lack of intent, commitment, or skill of the senior executive, but rather due to his/her overdependence and over-confidence in the management team. The simple fact is that the vast
majority of management teams are not experienced in managing transitions and often due not
place transition management at the top of their priority list - - and if they are experienced, the
approach among managers is likely different. There is also the likelihood that the management
team is not immune to the insecurity, uncertainty, political infighting, and cultural/process
upheavals - - and can not be expected to carry out obligations in the ideal manner expected by
the CEO.
Without a customized and comprehensive Transition Plan, cultures can be destroyed, morale
crushed, process efficiencies lost, and your best people recruited by competitors. On the other
hand, a comprehensive transition plan can not only minimize the risks but also take advantage of
the windows -of-opportunity that often open during a transition - - during which time employees not
only expect change, but are eager for it.
SCENARIO PRESENTATION
Background
Link was contacted by a major Fortune 500 company (Company A) to assist in evaluating and
possibly executing an acquisition of a much smaller organization (Company B) with considerable
human and material assets. Link’s assistance in the due diligence effort focused on the
structural, organizational, people, and process aspects - - mapping both risks and opportunities in
each area. The top-priority question was naturally whether the production costs and other
performance criteria could be optimized to the level that would justify the acquisition price. Link’s
conclusion was that there were considerable inefficiencies at virtually all levels of the
organization, and that performance could be improved to achieve a 30% increase in net income.
But beyond this key question there were others relating to the basic market strategy of Company
A, how Company B fit the strategy, what alternative strategies may need to be developed and
placed “on the shelf”, what goals and objectives for Company A were appropriate, and how
Company B (and A) needed to change in order to achieve the projected synergies. For example,
there were issues relating to the degree of centralization, integration of administrative processes,
Page 1
2. pursuit of economies of scale, consolidation of operations, employee compensation equalization,
managerial bonuses for transition objectives, and so forth. And Company A faced major
communications challenges to educate both organizations about what was occurring - - and why.
Transition Planning
Link reviewed its findings from the due diligence process, factored in the cultures, objectives, and
expectations of both organizations, and analyzed the works from the perspectives gained from
Link’s considerable experience. Link then began to develop its Transition Plan for the client,
outlining the specific agendas to be followed in each area, including compensation, incentives,
culture, administrative process, training, capital upgrade, maintenance, conduct of operations,
and so forth.
To maintain client confidentiality provisions, the following are a small sampling of the type of
recommendations Link would incorporate into Transition Plans in comparable situations. It is
important to note that an approach that is right for one company may be wrong for another. The
unique spectrum of issues and circumstances for each company demand a customized Transition
Plan:
Recommendation 1: Autonomy: Company B should be operated as a separate profit center, with
commensurate authority and accountability for Company A executives.
Rationale:
a) Performance of Company B needed to be closely tracked, and integration
into a larger profit center would complicate the tracking.
b) Company A wanted to retain the option to later divest Company B,
making it logical to maintain separate accounting and profit tracking.
Recommendation 2: Compensation/benefits: Even though Company B average salaries and
benefits were less than Company A, they would not be adjusted for 2 years.
Bonuses, however, would be established for achievement of specific
objectives. Bonus Accrual Statements would be sent to employees monthly,
but paid annually. Employees could at any time, however, buy computers,
cell phones, or PDAs through the Company using their accrued bonus at a
“50-cents-on-the-dollar-rate”. After 2 years, if major objectives were
achieved, Company B wages/benefits would be equalized with Company A
and bonuses for most employees eliminated.
Rationale:
a) Company B current profitability was not sufficient to warrant salary
increases, and bonuses based on performance improvement were
considered to be a better employee motivator.
b) If desired performance improvements were achieved for 2 years, salary
equalization with Company A was affordable.
c) The best company philosophy for the long term appeared to be that,
assuming performance improved for 2 years, salaries without bonuses
would be the optimum method to achieve “felt-fair-pay”.
d) Even though overall Company B benefit costs could be reduced through
integration with those of Company B, it was decided that employees would
be more highly motivated by the prospect for better benefits in 2 years if
objectives were achieved. This strategy also would make a subsequent of
divestiture of Company B less costly and easier for all concerned.
nd
Recommendation 3: Layoffs: No layoffs for 2 years, other than “for cause”. Between the 2 and
rd
3 years, any laid-off employees would be given 3 months notice - - with the
understanding that they maintained their productivity and did not actively
promote negative interactions with other employees.
Rationale:
a) Although many Company B managers could argue that layoffs were the
best method to improve profitability over the short term, it was decided that
Page 2
3. overall insecurities among the workforce and goodwill among employees
could best be optimized by a moratorium on layoffs.
b) Employees were notified of this promise during the due diligence stage in
order to reduce uncertainties and insecurity, as well as improve cooperation
from Company B employees.
c) The 3 month notification for layoffs is contrary to conventional wisdom,
but was deemed to signal a genuine trust of employees and set a tone of
fairness and loyalty from “corporate” that would hopefully engender
reciprocal reactions from employees.
Recommendation 4: Workforce Communications: Initiate 1) a website for employees and their
families to specifically communicate procedures for benefit information,
management, and sign-up; 2) establish a phone line dedicated to receiving
comments and questions from families of employees (if an answering
machine is used, commit to 24-hour response; 3) a contract with a
comprehensive HR information management company that allows for detail
tracking and interactive management of employee criteria (by both manager
and subordinate) such as salary, goal-setting and tracking, performance
appraisal, training, and so forth; 4) weekly newsletters for the first 3 months
on the status of the acquisition, reducing to monthly for the subsequent 18
months; 5) weekly manager/subordinate meetings to discuss the
acquisition, progress toward goals, and feedback from employees; and 6)
similar “all hands” meetings with the President whether in person, by videoconference, or tele-conference (monthly for the first 6 months, and quarterly
thereafter). An important caveat to these communication strategies is that
the messages must be well-designed, clearly-communicated, and
consistent. For example, in one instance the client slipped into the bad
habit of having the HR department draft the President’s monthly newsletter.
Although this may work if there is a high-level HR Director, there is a risk
that the organization will miss the valuable insights that come only from the
President that could otherwise bond and energize the organization.
Rationale:
a) Communication is key to success after an acquisition of merger, and it is
difficult (although possible) to over-communicate. The rule of thumb ought
to be to communicate until employees begin to complain about too much
information.
b) The families of employees are often at least as affected and concerned
about security, pay, and benefits as the employee. Reaching out to and
Employees were notified of this promise during the due diligence stage in
order to reduce uncertainties and insecurity, as well as improve cooperation
from Company B employees.
c) The 3 month notification for layoffs is contrary to conventional wisdom,
but was deemed to signal a genuine trust of employees and set a tone of
fairness and loyalty from “corporate” that would hopefully engender
reciprocal reactions from employees.
Recommendation 5: Transition Team: Form a Transition Team utilizing a few senior managers
who have experience in mergers or acquisitions, supplemented by a
consultant who can provide unbiased and independent advice and who is
outside the political and social infrastructure of the company. The Team
must be held accountable by the senior executive for the successful
implementation of the Transition Plan. The Team must have clear
objectives and authorities, as well as the time ensure the Transition efforts
do not end up as a low priority.
Rationale:
a) Managers are often over-tasked in their roles during the normal course of
events. During a merger/acquisition their work load inherently increases
Page 3
4. due to added complexity and increased demands and inefficiencies of
insecure employees. Even if they have time to pursue additional
responsibilities under a Transition Plan, they may relegate it to a lower
priority. Therefore, a Transition Team is almost always necessary to ensure
Transition objectives are never ignored.
b) A Transition Team of adequate size, with obligations and authorities that
cross all intra-company borders, can ensure the intent of the senior
executive is consistently endorsed and applied throughout the organization.
c) A highly-visible Transition Team also communicates to all managers and
employees that the senior executive is fully committed to the success of the
merger or acquisition.
Recommendation 6: Process Review: Even if a complete process review was conducted during
due diligence prior to an acquisition, it is likely appropriate to repeat portions
or all of the assessment. The focus should be on revising processes to
support post-acquisition objectives, incorporate new functionality, comply
with new requirements, and improve efficiencies.
Rationale:
a) A window-of-opportunity usually opens after a merger
or acquisition where managers and employees not only expect change but
are eager for it. Since most organizations seldom take the time to ensure all
policies and procedures are efficient, consistent, and compliant, this is an
ideal opportunity. Also, an acquisition often changes the work-flow,
objectives, and expectations of an organization, and the adaptation and
improvement of internal processes can be a critical key to success.
Recommendation 7: Management Training: Design and initiate a Management Training program
whereby every manager in Company A and B is educated on the
management philosophies, accountabilities, and processes.
Rationale:
a) A surprisingly small percentage of organizations have a clearly defined
management philosophy and set of guidelines, and fewer still have a
training and accountability program to ensure managers understand and
comply. A merger or acquisition not only creates an ideal opportunity to
reinvigorate a management training program, but also raises the risk level to
a point where failure to have such a program can become the singular
cause of total organizational failure.
b) A senior executive who has first-line managers who are great leaders is
truly blessed, and it can be argued that management training for such an
organization is a waste of time. Yet such a situation rarely exists, and
usually only in smaller organizations, and often only for a limited time.
Unfortunately, managerial competence is also subject to the natural law of
entropy - - meaning it degrades over time. We define managerial
competence as the ability to develop and maintain a team of subordinates
capable of producing desired results. For a very small group of managers,
this comes naturally. The vast majority of others need to have a clear set of
expectations and guidelines to follow.
c) The merger of two organizations usually results in the presence of two
distinct cultures, management philosophies, and management processes.
The senior executive may choose to maintain two distinct cultures if the
organizations are physically separated and functionally discrete, and if each
organization derives particular benefit from its own unique culture. Yet it is
much less likely that the senior executive can allow two distinct
management philosophies to coexist, since it may directly impact his/her
ability to delegate authorities and control accountabilities - - without which
the senior executive is ineffective.
d) If the following sample questions can not be concisely and consistently
answered by every manager and employee, it is very possible that there are
inefficiencies and risks that impede the success of the organization:
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5. Who is you manager? Do you have more than one?
Is your manager accountable for your productivity?
For what reasons can your manager terminate your employment? Do
you have an appeal process?
Who, other than yourself, is accountable for your long-term career
development?
Who must approve your promotion or compensation increase?
Can you have Employees were notified of this promise during the due
diligence stage in order to reduce uncertainties and insecurity, as
well as improve cooperation from Company B employees.
What is the difference between a committee and a team?
When you work on a committee for an extended period, or if you are
temporarily assigned to another department, who is accountable for
your performance and who performs your performance appraisal?
Summary
As previously stressed, each company and each situation demands a customized approach. Yet
the sampling of recommendations above should provide some insight into Link’s overall
capabilities and approaches, yet there are numerous issues and details that can simply not be
addressed in this document for the sake of brevity .
Even though this document addressed the Transition Scenario, many of the above perspectives
and approaches are pertinent to organizations during “steady state” periods. Change
Management techniques can be utilized to create positive change in organizations, and we would
be glad to discuss how Link may be able to assist you.
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