Shareholders
of the acquired company tend to capture all the gains
of the deal
Most
buyers overpay to get deals done. BusinessWeek studied
302 transactions from June, 1995, to September, 2001,
and found that buyers lost 61% of the time. It's not
that most mergers and acquisitions don't deliver
efficiency gains or make strategic sense. It's because
after the deal is done, the post-merger integration is
not well planned nor executed.
How
can a CEO motivate a workforce during a major business
transformation?
By talking about
transformation in the context of how an employee's job
will change, what they will be held accountable for
and how their performance will be
assessed.
CEOs bear the blame
for failed business transformations, yet many fail to
realize the root causes of that failure. Frequently, a
CEO will think he or she has made the case for a
business transformation, only to find out later that
no one bought the rhetoric.
Employees, after
years of service, arguably end up knowing more about
what works and what doesn't--but senior management
rarely solicits their opinions on how a business
transformation will affect their work
processes.
"The impacted group
needs to be involved early in the process of
transformation," says Jeanie Daniel Duck, author of
"The Change Monster" (Three Rivers Press, 2002).
"Their opinions of the real barriers need to be
understood thoroughly, and the overarching goal of the
new strategy, whatever it is, should be to solve their
problems in a way that works best for them. While a
new strategy is predicated on a company's business
performance issues, you will not get traction if you
don't consider the human performance issues. Besides,
you may end up spending a lot of money to fix
something that wasn't broken to begin
with."
The
deal is only as good as its implementation
Some CEO's are
creating all-star teams to assist with their post
merger management. Creating value starts by first
getting strangers to trust each other and then
becoming effective team players in the new corporate
culture.
Receive
our Podcast:
http://coachingtip.blogs.com/coaching_tip/rss.xml
or
get Free
Monthly Coaching
Tips!
by entering your name and email address
below:
A group of
business and thought leaders have created the
Open
Compliance and Ethics Group
Project
(OCEG) to establish best practices and standards to
help businesses reduce corporate and investor risk.
More information is available at www.oceg.org
or (602)
234-9278.
Is
your leadership development
derailed?
Do
your executives need some help in building
ethical
leadership
capability?
Can
they express their understanding and insights in
contribution and service to
others?
As we go into ourselves, we can go more effectively
out into the world---and---as we go out into the
world, we go deeper into ourselves. For help in this
process of self-discovery, get a coach.
Leadership
coach John G. Agno
knows that sometimes our thoughts aren't crystal clear
and we can be diverted from our goals. Agno's job is
to coach people to greater awareness, purpose,
competency and well-being, which often translates into
greater compensation, job satisfaction and better use
of our skills and abilities. More business owners,
executives and professionals are hiring coaches to
help them lead and make better decisions.
Ready
for some coaching in leadership?
Want
to learn about the costs of executive
coaching?
Want
to check out some coaching plan
options?
back
to home page
