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UnleashingthePotentialofMergersandAcquisitionsTheArtofAligningCorporate

Cultures

FrancisL.Battisti,PhD,CEO,BattistiNetworks,PLLC,Binghamton,NY

Top4ThingstoKnowforCE1. Make sure your BADGE IS SCANNED each time you enter a session to

record your attendance. 2. Carry your Evaluation Packet with you to EVERY session.3. Pharmacists, Pharmacy Technicians and Nurses need to track their hours

on the Statement of Continuing Education Form as they go (the 2-page triplicate form, so press firmly!).

4. FOR CE: At your last session, total the hours and sign both pages of your Statement of Continuing Education Form. Keep the PINK copy for your records and place the YELLOW and

WHITE copies in your CE Envelope. Make sure an Evaluation Form is in your CE Envelope for each session

you attended (extra forms are available at the registration desk if you forgot to pick one up).

Write your name and unique ID number (six digit number at the bottom of your name badge) in the designated area on the outside of the envelope, seal it, and place it in the drop box located near the registration area.4/8/2012 2

Francis L. Battisti is the CEO of Battisti Networks, LLC. The conflict of interest was resolved by peer review of slide content.

Clinical trials and off-label/investigational uses will not be discussed during this presentation.

4/8/2012 3

ProgramObjectives

1.Listorganizationalstrengthsandweaknessesthatmayimpactthesuccessofamerger.

2.Describethebusinesscaseforeffectivelytransitioningcorporatecultures.

3.DescribeDr.JohnKottersThe8StepProcessforLeadingChange,asapragmaticculturechangetoolforstrategicallyevaluatingmarketconsolidationopportunities.

4

MergersandAcquisitions Mergerisatransactioninwhichtwocompaniesopttomeldintoasingleentity.

Acquisitionsinvolvesthetakeoverofonecompanybyanother.

OrganizationalCulture thesocialgluetheCompanysDNA

Leadershipabilitytoinfluencethebehaviorofothersandpersuadethemtowillinglyfollowadesiredcourseofaction.

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MotivationsVary ConsciousMotivations

Growth..Globalization..Competition

UnconsciousMotivationsOpportunism,hubris,myopia

HistoricallyCostSavingsandEconomicsofScale

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TheFormula Leadership

Communication

CorporateCulture

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Leadership

Communication

Creating Culture

LeadershipDimension TransformationalLeaders..Inspiring

InspirationalMotivation

IntellectualMotivation

IndividualizedConsideration

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LeadershipDimensions Transactionalresultsoriented

ContingentReward

Managementbyexceptionactive

Managementbyexceptionpassive

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LeadershipDimensions Laissezfaireavoiding

AvoidsMakingDecisions

HesitantinTakingRisks

AbsentwhenNeeded

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TruthsSuccessofM&AisasmuchaboutPeopleandOrganizationalCultureasitisaboutFinancials!

Engagementwithcreativeproblemsolving,skillsduringtransitionaltimes.

Understandhowtoshapeemployeebehavior.

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TruthsDisengagementcanresultfromuncertaintyandemotionalstrain.

LossofMotivation

SabotagingCommunications

NegativeAtmosphere

LowerProductivity12

TruthsActionsandattitudesofSeniorLeadershipareKeycomponentstoPositivePerformance.

Holdthingstogether

ShareandLivetheVision

SetPriorities

CreatePositiveMomentum

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TruthsActionsandattitudesofSeniorLeadershipfosterasupportiveorganizationalculture.

Visibility

MeaningfulInvolvement

OpenCommunication

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TruthsPositioningforsuccessofM&AoccursBefore,DuringandAftertheTransformation.

ManageChange

DevelopStaffSynergies

IntegrateDiverseCultures

MaintainandGrowEmployeePerformance

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TruthsTransformingorganizationalcultureisaboutSkill,TechniqueandTiming.

TeamBuilding

Changeintegration

ConflictResolution

EmployeeEngagementSurveys

LeadershipDevelopment16

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HowtheHPandCompaqMergerWentSoWrong

HPandCompaq LossofofMarketValue

HeavyJobLosses

IneffectiveManagement

2MajorEthicsScandals

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HowtheDaimlerChryslerMergerWentSoWrong

DaimlerChrysler CultureClashes

DislikesandDistrustRanDeep

MarryingUp MarryingDown

Largeriftsinbusinesspracticesandmanagement

NoCoordinatedCourseofAction

KeyManagerLeft

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HowtheAOLTimeWarnerMergerWentSoWrong

AOLTimeWarner LackofPerceivedIntegrity

LackofEquality

FailedImplementationofSharedVision

PoorCommunication

LackofClimateforSynergiesofDiverseCultures

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HowtheRenault&NissanAllianceHasPaidOff

RenaultNissanAlliance CooperationandSynergies

CombinedExpertiseandTechnologySharing

CombinedTeamsandInformationSystems

CloseCollaboration

CoordinationBureauSteeringCommittee,CrossCompanyTeams,FunctionalTaskTeams,TaskTeams

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70%oforganizationalculturechangefailsbecauseitdoesntfitintothecurrentcultureanditsorderedinacommandandcontrolwayandcausesresistance.

~ www.ocai.com

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JohnKotterLeadingChange

EightMythsforOrganizations NotEstablishingaGreatSenseofUrgency NotCreatingaPowerfulEnoughGuidingCoalition LackingaVision Undercommunicating theVisionbyaLackofTen NotRemovingObstaclesToTheNewVision NotSystematicallyPlanningforandCreatingShortTermWins

DeclaringVictoryTooSoon NotAnchoringChangesintheCorporationsCulture

~ JohnKotter

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EightMythsandStepstoTransformYourOrganization

STEPONE

Myth NotEstablishingaGreatSenseofUrgency

SteptoTransform EstablishingaSenseofUrgency

EightMythsandStepstoTransformYourOrganization

STEPTWO

Myth NotCreatingaPowerfulEnoughGuidingCoalition

SteptoTransform FormingaPowerfulGuidingCoalition

EightMythsandStepstoTransformYourOrganization

STEPTHREE

Myth LackingaVision

SteptoTransform CreatingaVision

EightMythsandStepstoTransformYourOrganization

STEPFOUR

Myth Undercommunicating theVisionbyaLackofTen

SteptoTransform CommunicatingtheVision

EightMythsandStepstoTransformYourOrganization

STEPFIVE

Myth NotRemovingObstaclesToTheNewVision

SteptoTransform EmpoweringOthersToActontheVision

EightMythsandStepstoTransformYourOrganization

STEPSIX

Myth NotSystematicallyPlanningforandCreatingShortTermWins

SteptoTransform PlanningforandCreatingShortTermWins

EightMythsandStepstoTransformYourOrganization

STEPSEVEN

Myth DeclaringVictoryTooSoon

SteptoTransform ConsolidatingImprovementsandProducingStillMoreChange

EightMythsandStepstoTransformYourOrganization

STEPEIGHT

Myth NotAnchoringChangesintheCorporationsCulture

SteptoTransform InstitutionalizingNewApproaches

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Unlessyouarepreparedtogiveupsomethingvaluableyouwillneverbeabletotrulychangeatall,becauseyou'llbeforeverinthecontrolofthingsyoucan'tgiveup.

~AndyLawCreativeCompany

Peop

ledon

'tresistcha

nge.The

yresistbeing

cha

nged

!" ~PeterSen

ge

Unadaptivecultureswillhaveanevenlargernegativefinancialimpactinthecomingdecade.JohnKotter &JamesHeskett,HarvardBusinessSchool,CorporateCultureandPerfomance

Inmostorganizationalchangeefforts,itismucheasiertodrawonthestrengthsoftheculturethantoovercometheconstraintsbychangingtheculture.

~EdgarSchein,professorMITSloanSchoolofManagement

LearningAssessmentQuestions&Answers

PleaserefertotheNHIAAnnualConference&Exposition2012OnSiteProgramforabrief

posttest.

francis@battistinetworks.com

4/8/2012 42