Every Acquisition Needs a Change Champion

In 2016, a past client sponsor joined a high-profile, global Fortune 500 firm as their EVP – Chief Transformation Officer. He knew from the outset they would need to undergo seismic changes to remain successful. The company had not invested time or money toward updating its back-office systems and, as a result, found themselves unable to implement technology advancements that were critical to remain competitive. After 20 years of deprioritizing investments in and around their back-office technologies, there was a lot of work to be done to modernize systems, transform day-to-day operations, and re-train existing employees, all while being attractive to new associates.

Our client asked us to evaluate this company’s structural health and change readiness. We examined their challenges and considered options. Everyone was eager for change, but they were unsure where to start. Our discovery exercise showed them what worked and unmasked areas that needed a higher level of governance and guidance. We delivered a plan built around a proven success framework to support prioritization, allowing them to build and execute their transformation plans around people, processes, and technologies. 

In Summary

Here are some consistencies we’ve experienced with big transformational changes of serial acquirers:

Focus on Governance and Decision Making

Following most acquisitions, when leadership teams attempt to consolidate systems and operations, there is a disconnect between what worked for one company and what works now for both. Investing time in reimagining business, workflow, and supporting systems that support a customer experience that is compelling is necessary for growth now and into the future.

Alignment of Internal and Customer Facing Operations

While it might seem intuitive to develop customer-facing operations following an acquisition or series of transactions, focusing only on what generates revenue is a mistake. Customer satisfaction and overall business growth will decline without modernizing back-office operations.

A Change Champion

In every successful integration and technology transformation, a clear leader or team emerges to drive the rationale and need for exponential change. Sometimes they show up later, but whenever they emerge, having respected, credible, operationally-and client-focused leadership at the helm ensures that activities are well connected.  A highly-empowered senior sponsors keeps the need and mission for change clear, and keeps customers at the forefront. 

The Future Belongs to Those Who Adapt

At ESG, we understand how challenging it is to undergo transformational changes when dealing with outdated systems in a serial acquisition environment. We’d love to discuss how we can best serve you. Contact us today to learn more.

Author

Mark Newhall

Founder of ESG

Other Blogs
February 20, 2018It has been said that “to everything, there is a season.” Truer words were never spoken regarding the cycles a business will go through. Growth happens, chaos occurs. Wash. Rinse. Repeat. It is unavoidable. As businesses look to sustain growth, inevitably the notion of M&A – or at least some form of integration – will occur. For those companies that walk this path, they will find that the successful integration of two entities has the potential to grind the gears of a company’s well oiled-machine to a halt if not executed correctly. Integration and/or transformation require a fundamentally different set of skills, views and personas than what is required during more “peaceful” seasons. However, in a corporate environment full of consolidation where the “merge-or-perish” mindset thrives, many chief executives are increasingly taking inventory of the skillsets of their leadership teams to determine which members are equipped to help guide the company through more turbulent times. This should not be read as a criticism of a disciplined and well-trained leadership team that has helped a company achieve sustained organic growth over time. On the contrary, companies make enormous investments in cultivating employees’ professional and leadership skills that are routinely applied to roles like marketing, customer service, supply chain management and human resources that typically rely on solid interpersonal skills as part of their functions. Problem is – those skills are most reliable and repeatable when a company is in a “peacetime” growth mode – acquiring customers, establishing networks, creating a partner ecosystem, etc. Once the potential for a more acquisitive style of growth occurs, however, many top leaders find that their most successful “peacetime” leaders are not equipped to develop an effective integration strategy and execution plan. The “wartime” skills required during these seasons are seldom possessed by the same executives that grew the business organically. In a 2011 book, VC guru Ben Horowitz clearly defined his ideal Wartime CEO (complete with essential Godfather references); in a transformative situation the remainder of the C-suite will inevitably face that same level of scrutiny. To be clear: the solution is not to replace your leadership team if/when you get involved in corporate transformation. That’s simply inviting chaos and is likely not needed. For many companies the season of integration is much shorter, and their need for wartime leaders is seldom permanent – but rather more lumpy. And, to be fair, it’s important to recognize that it’s nearly impossible for individuals to successfully focus on the day-to-day operations of a company while also sufficiently planning and executing a merger or integration. It therefore makes sense for chief executives to assess their C-Suite to determine on which side of the aisle their top leaders reside.  Armed with an accurate view, leaders can consider if it makes sense to re-write roles and responsibilities within a team, and focus people on what they do best – if even for a short period of time. From more than 30 years of experience ensuring successful integrations, we believe there are a few important traits leaders should look for from the “wartime” team. These include: Microtasking: Wartime executives cannot afford the luxury of big-picture thinking or collaborative strategizing. Instead, every detail needs to be carefully managed and every decision made with confidence and deliberation. If business is chess, a wartime exec views the whole board, not just one move ahead. Decisiveness: When M&A is on the table, executives are often asked to make hard decisions that impact lives and families. It’s not for the faint of heart and once decisions are made, there is no time for wavering. Big choices need to be made, and moved on with no looking back. The ability to focus and maintain resolve are skills that don’t come easily to everyone, but they can be honed with experience and knowledge. Clarity: During a transformative period, any confusion regarding the strategy and action plan will inevitably lead to discontent and disruption. Leadership teams need to know the what, the why and the how of the strategy and buy into it, and help ensure that employees have similar clarity of purpose. Even the most consistent and productive executives sometimes have difficulty acting as change agents, but the wartime leader sets a clear path, embraces transition and approaches change objectively. It is, of course, much easier to write about a reassessment of a company’s leadership team than to actually execute a changeover. Again, the priority for CEOs should always be to keep their company’s operations running at full capacity, with minimal disruption. So while it makes sense to identify the best internal resources to execute a transformation, it’s also worth exploring third-parties that can act as a de facto wartime C-suite. M&A integration specialists provide independent and practical perspective. Assuming they have the expertise that comes with repeated exposure to M&A activity, the right consultant can execute a transformation with focus, clarity and subjectivity that is often impossible for an internal legacy team to manage.          —By Mark Newhall, ESG Founder and CEO Printer Friendly Version [...] Read more...
February 13, 2018Execution Specialists Group (ESG), a strategy execution-focused consultancy,  is pleased to announce the appointment of ESG’s Chief Financial Officer, Jodi Mercer, to the Emily Griffith Foundation Board of Directors for a three-year term (2018-2020).   Mercer joins the Emily Griffith Foundation Board with more than 17 years of senior executive and distribution industry experience in both field and corporate finance and accounting. She currently serves as CFO of ESG, responsible for long term financial planning compliance and reporting and treasury functions.  Prior to ESG she was Vice President / Corporate Controller for Renewable Energy Systems Americas and held numerous financial leadership roles with  CRG West, Corporate Express and Clopay Corporation.   In addition to her finance background, Mercer is the Treasurer and Secretary of the Making Strategy Happen Foundation, the charitable arm of ESG, and volunteers as a mentor with Women’s Bean Project, one of the Foundation’s partner organizations. She is actively involved with a number of animal welfare organizations as well. “We are delighted to have Jodi join our Board of Directors,” said Alby Segall, President of Emily Griffith Foundation. “Jodi brings nearly two decades of financial expertise as well as previous foundation board experience to our Board of Directors and her skills and experience will be valuable to help us meet our Foundation goals.” “I am passionate about the Foundation’s purpose to provide resources to ensure opportunity for all who wish to learn,” said Mercer. “I truly admire the thought leadership on the future of workforce development and feel we’re at an inflection point right now. By joining the Foundation Board, I want to help drive our leadership nationally in this space, while championing workforce education.” Emily Griffith Foundation provides financial support to Emily Griffith Technical College which enables the school to keep its tuition rates one of the lowest in the state while providing cutting-edge education in growing industries.   About ESG Based in Denver, Colorado, Execution Specialists Group (ESG) is a strategy execution-focused consultancy with extensive global experience engaging with client senior leadership to plan and deliver on complex integration, transformation, and innovation objectives. ESG relentlessly focuses on delivering meaningful client outcomes and leaving behind a culture of execution. Recognized by Forbes as one of the “Top Management Consulting Firms” for the past two years (2016 and 2017), ESG leaders have managed hundreds of integrations across all functional disciplines including sales, merchandising, supply chain, marketing, real estate, technology, human resources and finance to deliver disciplined program design and execution. Clients include Caesars Entertainment, Gordon Food Service, Office Depot/OfficeMax, Staples, Target Corporation, Whole Foods and more. To learn more about ESG, visit www.esgimpact.com About Emily Griffith Foundation Our financial support of Emily Griffith Technical College (EGTC)  enables the school to keep its tuition rates one of the lowest in the state while providing cutting-edge education in growing industries.  Our innovative work ensures students have the support they need to succeed — both inside and outside the classroom. As a result, EGTC students enjoy one of the highest completion (89%) and job placement (81%) rates in the state. 100% of EGTC students benefit from our support, which allows every student to graduate without student loan debt. For more information, visit www.egfoundation.org   ESG Media Contact: Jennifer Levasseur (720) 235-0816 x399 mediarelations@esgimpact.com   Emily Griffith Foundation Contact: Alby Segall 303-520-4962 asegall@egfoundation.org [...] Read more...
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