Behavioral Strategies

and Methods Necessary for

MERGER &ACQUISITION

SUCCESS

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.

The 5 Phases of M&A Success

M&A Success

1

Explore and Qualify

2

Closure

3

Integration

4

Short-term Engagement

5

Long-term Engagement

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.

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.

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.

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.

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.

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.

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.

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.