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/

1. Murders & Acquisitions
Leading through Transition
Simone moore
@simonejomoore

2. Leading through Transition
@SimoneJoMoore

3. 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

4. Show me the money!
Over 40,000 announced
worth around US$3,000B
Source: www.imaa-institute.org
@simonejomoore

5. Show me the money!
1,500 transactions
worth around USD 70 B
Source: www.imaa-institute.org
@simonejomoore

6. 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 Busted
Greenmail
Takeover Golden Parachute People
Pill Macaroni Defense Acquisition
Indigestion Sandbagging
White Knight Spinoffs
investopedia.com
@simonejomoore

7. 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

8. 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

9. 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

10. Top 12 Scary Facts that could happen to your job…
Restructuring & Conflict with your
Mergers & Couldn’t work
Layoffs due to existing or
Acquisitions, well with your
lower profits in new boss.
elimination of job colleagues or
Headquarters? Personality
redundancies team members
Do you believe it? clashes
Sweet yet
Backstabbers or
Power Politics Smart Liars, Closure of Office
Two Faced Mask.
at Play everyday, pretty good due to bankruptcy
Act very well in
becomes a hobby at Sabotaging. or overpaying
front of the
to some of them Love to Bcc “foreign talent”
management
Emails
Company
relocation to Losing End due to Demoted due to Change of Role &
developing Favoritism & some stupid Responsibility not
countries. Biases of Race & reasons given by matching your
Cheaper Labor, Gender the management skills and values
lower costs
Courtesy of Springboard Talent
@simonejomoore

11. Courtesy of Macanta Consulting
@simonejomoore

12. Behaviour Rhythms
Before During Day 1 & Beyond
Waiting Initial
Engagement
Renewal
Relief
Passive Constructive
resistance Compliance
Uncertainty
Reconstitution
Defiance
Crush Day 1 Fatigue &
Acquiescence Implementation
Passive Reality
Aggressive
Adapted from Leading through Transition Paper - Deloitte
@simonejomoore

13. 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

14. 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

15. 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

16. 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

17. Margin Call
@simonejomoore

18. Embed Sustainability
A wareness
D esire
K nowledge
A bility
R einforcement
Source: www.change-management.com/tutorial -adkar-overview-mod1.htm
@simonejomoore

19. 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

20. 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

21. M&A Stories & Lessons
Case 1
Case 2
Case 3
@simonejomoore

22. @simonejomoore

23. @simonejomoore

24. Blind Evidence!

25. @simonejomoore

26. @simonejomoore

28. Death
Warrant!

29. @simonejomoore

30. Company
Announcement

33. Strength
Courage
Focus
Improvise
Adapt
Overcome

34. “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

35. PRESERVE

37. Physical price
vs.
Good Will

38. @simonejomoore

39. Lead your people, not murder them!
Allow them to take back their life from
this unseemly, difficult death.

40. There is no
loyalty to
companies today
but there is
loyalty to
yourself and
your profession.
It is a direct impression and
facet of who you are.
@simonejomoore

41. You cannot change the direction of the
wind but you can adjust the sails.
@simonejomoore

42. 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
E: simone@hdaa.com.au / info@hdaa.com.au
@simonejomoore

43. 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

44. 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

45. WITH THANKS TO OUR SPONSOR
bmc FOOTPRINTS
#TFT returns may 2013
@simonejomoore