#tft12 simone jo moore
DESCRIPTION
Presentation for #TFT12: Murders & Aquisitions - Leading Through Transition. It was a dark and stormy night and in the dimly lit boardroom of X-Con, the directors watched their Chairman gazing out the floor to ceiling window. The room was filled with secret anticipation, the secret joy of committing the easiest and most unpunished of crimes... The impact and management of people during a merger, acquisition or internal restructure. Simone discusses the creation, preservation and destructive facets of why murders and acquisitions occur and the quandary in dealing with the resulting emotional turmoil. See Simone's TFT speaker Pinterest board: http://pinterest.com/servicedesk/simone-jo-moore/TRANSCRIPT
@simonejomoore
Murders & Acquisitions Leading through Transition
Simone moore
Leading through Transition
@SimoneJoMoore
@simonejomoore
Agenda
Show me the money!
It’s a wacky world (the why & complexity)
Emotional Rhythm
Leading Through Transition
Lessons Learned
Murder Most Foul
Summary
Resources
@simonejomoore
Show me the money!
Over 40,000 announced
worth around US$3,000B
Source: www.imaa-institute.org
@simonejomoore
Show me the money!
1,500 transactions
worth around USD 70 B
Source: www.imaa-institute.org
@simonejomoore
The wacky world of M&As…
Sleeping Beauty Amalgamation
Corporate Raiders Poison Pill Predator’s Ball Shark Repellent Horizontal Integration
Saturday Night Special Dawn Raid Greenmail Busted
Takeover Golden Parachute People Pill Macaroni Defense Acquisition Indigestion Sandbagging
White Knight Spinoffs
investopedia.com
@simonejomoore
Why?
Larger share of existing market
Enter new markets
Eliminate competitors
Acquire expertise or assets
Transfer skills
Save costs
Increase efficiencies
Capitalise on synergies
@simonejomoore
Complexity
Legal & Financial Aspects
Oversimplifying people-related risks leads to:
inaccurate integration planning scenarios
poor synergy predictions
unexpected costs
retrenchment panic
loss of critical talent
unhappy/lost customers
resistance build up
motivation drops
@simonejomoore
Critical Success Factors
Retaining key talent
Aligning leadership
Getting the right mix of skills and competencies
Communicating and managing change with employees
Properly estimating people-related synergies
@simonejomoore
Top 12 Scary Facts that could happen to your job…
Restructuring &
Layoffs due to
lower profits in
Headquarters?
Do you believe it?
Mergers &
Acquisitions,
elimination of job
redundancies
Conflict with your
existing or
new boss.
Personality
clashes
Power Politics
at Play everyday,
becomes a hobby
to some of them
Sweet yet
Smart Liars,
pretty good
at Sabotaging.
Love to Bcc
Emails
Backstabbers or
Two Faced Mask.
Act very well in
front of the
management
Closure of Office
due to bankruptcy
or overpaying
“foreign talent”
Company
relocation to
developing
countries.
Cheaper Labor,
lower costs
Losing End due to
Favoritism &
Biases of Race &
Gender
Demoted due to
some stupid
reasons given by
the management
Change of Role &
Responsibility not
matching your
skills and values
Couldn’t work
well with your
colleagues or
team members
Courtesy of Springboard Talent
@simonejomoore
Courtesy of Macanta Consulting
@simonejomoore
Before During Day 1 & Beyond
Behaviour Rhythms
Uncertainty
Waiting Initial
Engagement
Passive
resistance
Defiance
Passive
Aggressive
Acquiescence
Constructive
Compliance
Crush Day 1
Relief
Fatigue &
Implementation Reality
Renewal
Adapted from Leading through Transition Paper - Deloitte
Reconstitution
@simonejomoore
Leading Through Transition
How leaders choose to communicate during a M&A is
key to realising the value
Fail to communicate because:
Not a legal requirement
Time pressures
Don’t have the answers to ‘my future’ questions
@simonejomoore
Leading Through Transition
Commitment and patience are essential
You need to deal with loss before you can deal with what
is gained
Affirm their experience and help them to deal with it
It is not agreeing with people or being nice to them
It is simply understanding how the world looks to them
and using that as the starting point in your dealings
@simonejomoore
Leading Through Transition
Early involvement and participation
Leaders and staff provide valuable input to ‘Go / No-Go’
decisions
Form your communication strategy
Defined core message set
Sticking to the message
Be highly visible
Be able to explain
Manage expectations, establish credibility
@simonejomoore
Leading Through Transition
Form your communication strategy cont…
Face difficult issues (eg. redundancies) with candour
Determine what to say when you don’t have the answers
Establish/reinforce two-way communication mechanisms
Create positive sense of urgency
Identify quick wins to prove a working integration strategy
Communicate and celebrate the wins and recognise those who helped
@simonejomoore
Margin Call
@simonejomoore
Embed Sustainability
A
D
K
A
R
wareness
esire
nowledge
bility
einforcement Source: www.change-management.com/tutorial -adkar-overview-mod1.htm
@simonejomoore
Back2ITSM Lessons Learned
If they don’t like the buyer, skilled people leave
Is it your service they’re buying or your body?
It’s not the legalities of the people but the being of
people that is usually forgotten
Don’t undersell yourself or you miss out on retention
Get noticed for the right reasons
Recognise the emotions & acknowledge them
Guide your people through the change cycle (be there
with them, not for them)
@simonejomoore
Back2ITSM Lessons Learned
Point out opportunities for personal growth to each
person unique to their situation
If they sense any fear or negativity, they will shut down
and freak out
Bad leaders often take the wrong path of trying to bond
with their team in "us vs them" talk, negativity, gossip,
etc
Whenever possible, demonstrate an infectious attitude of
hope, dedication, and team support
@simonejomoore
M&A Stories & Lessons
Case 1
Case 2
Case 3
@simonejomoore
@simonejomoore
Blind Evidence!
@simonejomoore
@simonejomoore
Death Warrant!
@simonejomoore
Company Announcement
Strength
Courage Focus
Improvise
Adapt
Overcome
“There is a vitality, a life
force, a quickening that is
translated through you into
action, and because there
is only one of you in all
time, this expression is
unique. And if you block it,
it will never exist through
any medium and be lost. Martha Graham
PRESERVE
Physical price vs.
Good Will
@simonejomoore
Lead your people, not murder them!
Allow them to take back their life from
this unseemly, difficult death.
@simonejomoore
It is a direct impression and
facet of who you are.
There is no
loyalty to
companies today
but there is
loyalty to
yourself and
your profession.
@simonejomoore
You cannot change the direction of the
wind but you can adjust the sails.
@simonejomoore
Summary
Lead with trust
Lead with influence
Lead with vision
M: 0416 289 366
TW: @simonejomoore
TW: @hdaa1
FB: http://www.facebook.com/EnergiseHDAA
Web: www.hdaa.com.au / www.simonejomoore.wix.com/simonejomoore
@simonejomoore
Resources
ADKAR
http://www.change-management.com/tutorial-adkar-overview-mod1.htm
Balanced Diversity – A Portfolio Approach
by Karen Ferris, Macanta Consulting (avail thru itSMFA bookstore)
Back2ITSM
Callouts to Aprill Allen, Daniel Billing, Joshua Brusse, Karen Ferris, James Gander, Jan Hutten, Mark Kawasaki, Peter Lijnse
CSI Lifecyle Approach, ITIL Framework
ITSM Weekly Podcasts (global groups)
@simonejomoore
References
IMAA (Institute of Mergers and Acquisitions)
Investopedia
Springboard Talent
Leading through transition, Perspectives on the people side of M&A by
Deloitte
Social Network Mixing Patterns In Mergers & Acquisitions - A Simulation
Experiment by Fabac, R., Schatten, M., Đuričin, T.
Change Management in Mergers and Acquisitions by ChangeWright
Consulting and ChangeAbility Training Pty Ltd
The Emotional Change Curve! by Joshua Brusse
The Canadian Financial Executives Research Foundation (CFERF)
@simonejomoore
WITH THANKS TO OUR SPONSOR
bmc FOOTPRINTS
#TFT returns may 2013