The root cause of M&A failures is that :
- They generally neglect the differences in business logic between the merging entities.
- They take into account synergy effects that do not materialize, and neglect integration costs.
In response, it’s not (only) through communication or coaching plans that we resolve the frictions that emerge during a merger-acquisition. The challenge is to build an integration plan and future operating methods that create value, and in which the various stakeholders have a stake.
To meet these challenges, Viggo has developed a specific methodology based on 9 key principles:
Principle no. 1: define the organizational framework very quickly, and leave time for the teams in charge to put operational procedures in place.
The main principles (which objectives, which deadlines, which key positions) must be defined rapidly before the merger process with the management team, in order to structure the framework of the new organization;
Principle no. 2: identify, enhance and consolidate the strengths of each organization.
One of the main mistakes in a merger is to try to apply practices in a unified way, without taking into account their real operational value and any commercial differences. On the contrary, the merger should be used as an opportunity to rethink operating methods, drawing in particular on the strengths in place in the two merging entities;
Principle no. 3: start from a shared diagnosis, so that the players involved have a common vision of the roadmap and priorities;
Principle no. 4: be aware that change is not just a matter of modifying organizational charts, or acting on training and communication, but of putting in place the operating methods needed to manage the key issues at stake.
Changes involve teams in the production of diagnoses and the search for solutions, in order to achieve the targeted economic objectives and obtain lasting buy-in from teams.
Principle no. 5: maintain a positive balance between the benefits and constraints borne by teams, so that they project themselves positively into the transformation process over the long term.
Principle no. 6: don’t assume that top management is in favor of the project, so as to integrate any resistance or misunderstanding on key points;
Principle 7: support teams so that they can find their full role in the new organization, especially management, who will have to steer the new organization in a very operational way.
In addition, specific support must be provided for managers who are having the most difficulty with the new management model required.
