How to succeed in a Merger - A humane Approach by Aubrey Rebello
A lot of the principles I apply is drawn from my experiences as a CEO and shapes the way I approach coaching with my clients. Depending on the type of challenges Clients face I may draw upon them to share as a perspective to enable Clients to find their own solutions; because such information, experience and access is often limited and specific.
Being able to openly share my personal experiences from my previous professional roles can help my clients in those specific situations. It is one of the ways I provide the necessary coaching space to offer ideas, considerations, questions, brainstorming and readiness-for-considered -action in order to more robustly test their plans to get the best outcomes and adjust when other critical scenarios emerge that were not visible at the start.
This blog is my personal experience at managing a merger and successfully leading the organization to record profits thereafter!
Managing a Merger
I was designated CEO of 2 Financial Services Services Companies that needed to be merged.
The Merger involved:
The best combination of 2 Leadership teams at Head Office & Field.
New Roles and Relocations for 40% of the employees
New designations & location changes are always personally painful when not planned by the employee
Revised Compensation structure
A performance-based structure to aid motivation in this challenging time where careers hang in the balance.
Management / Employee Attrition
There will always be a few good employees that do not accept change even after counsel.
The process of handling a merger is complex and time consuming. The merger took place of a two-year timeframe.
There are emotions involved!
New job descriptions may cause resentment or fear and in a worst-case scenario disgruntled employees may even try to sabotage a merger.
As CEO, you need to approach a merger with a multifaceted mindset. Manage emotions as well as expectations successfully AND grow the business simultaneously. This may sometimes lead to disaster. However, if a merger is done well, there can always be a happy ending.
How my success story reads
Over the two years where the overseeing of the merger took place, Business grew at 45% CAGR from beginning of Merger & continued for next 5 years.
In the 5 years I was in charge, Business in terms of annual disbursals grew from $ 0.4 bio to $2.8 bio with good profits.
What made this merger a success:
Absolute Authority - CEO could make quick decisions with zero interference
ALL staff are important
Avoiding the top-down strategy.
Example: Field staff bring in business but are not involved in management and policy. Here it was important to consider Field Staff as important as Head Office Staff even though managers are decision makers. The strategy to value every employee is motivating and energises all to help grow the business as one.
Walking the Talk
Mean What You Say and no empty promises.
Townhalls & One-on-one meetings
Addressing concerns and resolving issues.
A CEO needs singular focus on business strategy and have the ability to implement resolutions swiftly.Visible & Accessible CEO
A Leader & Decision Maker is someone Everyone Sees, Respects & Accepts. Someone who has a face and a humane approach to genuinely help make the process easier.
Honest & Fair
All decisions that impact an employee are made fairly and policies are well documented and uniform for all.
Finally, a thriving business bears fruit for all. Once employees see the benefits of growth their assured of successful careers and a good livelihood. It’s a win-win for all.
Finally, being humane is not forgetting the employees that must be let go. A one and final list of these employees with no impartiality maintains the sanctity of the process.
A good severance package goes a long way in maintaining the good reputation of the organization.
In Short, a Face to Relate with, Human Touch, Open Process, Fairness, Frequent Communications are ingredients for Success in Mergers along with Business Growth.
A Competent CEO with Empathy and a free hand are Prerequisites!
Why this is important?
As a reflective practitioner in all my professional work, most recently as an executive coach, it’s enabled me to distil which principles are core to the way I work professionally. I have shared many of these principles as individual posts. In this piece, I’ve inversed my normal way of writing about my practice, to share how I’ve applied these principles together in a piece of work that I’m also proud of achieving in my past career portfolio.
Leaning-in on an executive coach with this type of experience can be valuable for those going through this the first time, or haven’t succeeded in an M&A, to become better at it whilst maintaining their existing responsibilities. By helping those leaders identify their own set of principles, or adopt some from others, will help with the overwhelming emotions that will impact and influence their decision-making process, and it would be even better if an independent and compassionate sounding board is part of their resources.
To connect with Aubrey Rebello
Aubrey brings to the table over 40 years of rich & varied Corporate Experience as CEO, Director, and Business Head with Tatas & Bayer.
Aubrey has strategised & managed a major merger, was CEO of a large NBFC, & Profit Centre Head of a large Business. In all his assignments he has rapidly scaled up revenues & profits. In many areas he has also built up Structures & Processes from scratch.
Post retirement Aubrey continues as an Advisor to a Tata Company. Aubrey is also an Executive Coach to several Indian & Foreign Corporates He is also an expert in Family managed Businesses serving as a Business Consultant & Mentor to Business Families. Having had Leadership Roles in different work Areas & Industries Aubrey’s expertise is in Financial Services , Automobile Industry, Mergers & Integration , Materials Management , & Learning & Development .
Aubrey is an Engineer from IIT Bombay & a First Rank Gold Medallist MBA from IIM Ahmedabad. He is also a Certified Executive Coach - International Coach Federation & NEWS Switzerland. He has several hundred hours of coaching experience at the MD & CXO levels.
