Sustainable Acquisitions Demand Complete System Optimization

Large companies pursuing serial acquisitions must prioritize operations and workflow. Our experience has shown the significant impact of updating systems on a business’s overall functioning, especially for companies built through multiple acquisitions. Overlooking the rationalization of business processes typically results in preventable complications. Our clients rely on ESG’s pattern-recognition expertise, toolsets, and hands-on support honed on more than three decades and hundreds of acquisitions to guide them through critical early-stage planning in these areas.

Every Acquisition Needs a Commited Change Champion

Recently at ESG, a global Fortune 500 client EVP client recognized the need for seismic shifts in their organization to stay competitive. However, the company’s neglect of back-office systems left them unable to implement essential technological advancements. After nearly two decades of deprioritizing back-office investments, they now faced the daunting task of significantly modernizing systems, transforming operations, and retraining employees—all while attracting new talent and mitigating complications that would directly impact front-of-house operations.

This client enlisted ESG to assess their structural health and change readiness. After evaluation, we identified key challenges and potential solutions to remedy the risks at hand. For example, despite eagerness for change, they lacked direction. Through our team’s expertise, we highlighted areas needing higher governance and guidance, and delivered a comprehensive plan based on a proven success framework. This enabled them to prioritize and execute their transformation around people, process, and technology.

In Summary

Here are some patterns we’ve recognized around large scale transformation acquirer plans:

Consistencies in Transformational Changes

Oftentimes, companies make the assumption that their systems and operations will effectively transition to the company being acquired. However, our experiences suggest that there can be a disconnect between what has worked for one company and what will work for both. Legacy systems, inefficient workflows, conflicts in process based on differing industries or outputs – these can all complicate an acquisition and create unsteady footing for new and old colleagues alike. Change management may be required for all parties involved – not just the one being acquired. Regardless of whether your company is in the process of acquiring or getting acquired, it’s important to proactively assess what works for your systems and where there are gaps of opportunity that can be optimized through this engagement to prevent delays and stopgaps.

Alignment of Internal and Customer-Facing Operations

Focusing solely on customer-facing operations post-acquisition might seem intuitive, but it’s a mistake to neglect back-office modernization. Without updating these systems, your team is unable to internally operate at a sustainable pace, which in turn can negatively affect customer satisfaction and overall business growth. A delay on the backend (e.g. slow processing servers) may result in an even more significant reaction on the frontend (e.g. a frustrated customer complaining about your company’s slow customer service online or to their circle of colleagues).

Backend optimization may not show immediate impact in comparison to a frontend overhaul, but it will certainly show detrimental, long-term impact to multiple layers of your business if left unchecked.

A Change Champion

Successful integrations and technology transformations always have a clear leader or team spearheading the rationale for exponential change and navigating the internal conflicts that arise between leadership teams with differing visions. Having respected, credible, and operationally-focused leadership ensures that all activities are well-coordinated and communicated. Empowered senior sponsors manage clarity on the mission at hand and keep customers at the forefront, all while maintaining in-house expectations and communicating areas of friction.

The Future Belongs to Those Who Adapt

Reimagining business workflows and supporting systems for enhanced colleague and customer experiences is vital for sustained growth. At ESG, we understand the complexities of transformational changes, especially when dealing with numerous systems in any acquisition environment. Contact us today to learn more, and discuss how we can support your process.

Author

Mark Newhall

Founder of ESG

Other Blogs
March 31, 2017Untangling complex business tie-ups In mergers and acquisitions of big companies, the bankers and lawyers who put the deals together are not the ones who have to make them work, says the founder of Denver-based consulting firm Execution Specialists Group (ESG). Mark Newhall, founder of ESG, is the guy companies call after the M&A contracts have been signed. They want his insights on how to organize and blend the newly merged companies so they don’t waste time. “With any large firms that come together, it’s the underestimation of just how complex it is,” Newhall said. “Some of them get caught on systems. Many get caught on culture.” In 2016, Forbes named his company a “top management consulting firm,” and in March, ESG was recognized by Florida-based Office Depot Inc. (Nasdaq: ODP) for three years of work following its mega-merger with OfficeMax. Newhall opened ESG eight years ago after he helped grow the Dutch company Corporate Express from $40 million into an $8.5 billion company as its vice president of global strategy. In 15 years, Corporate Express acquired more than 600 companies. “My job was how you put 600 companies together to create one customer experience, one value proposition across 28 countries and 50,000 employees,” he said. In 2008, Corporate Express sold to Staples Inc. (Nasdaq: SPLS) for $2.6 billion. “For me, that was a 15-year project,” Newhall said. “We built a company and did what we were supposed to do.” After the sale, he left the company. Then, he got a call from Michigan-based Gordon Food Service, a privately held company and the third-largest food-service distributor in North America. The company had made acquisitions in Canada and wanted counsel on folding in the companies it had purchased. Newhall was reluctant. He worried that he didn’t know the food business, but he took a meeting with them. “About three weeks into it, I had an A-ha moment,” he said. “There is a business here — putting these kinds of businesses together is an acquired skill set.” He realized that no matter what the industry, businesses that merge need to figure out how to organize people and how to motivate them. He knew how. By 2016, ESG had worked with 50 of the world’s largest companies, including a three-year gig with the teams at Office Depot and OfficeMax, which merged in 2013, but just recently completed the integration. “Throughout three years of change, ESG remained a constant,” said Rick DiMaio, vice president of distribution for Office Depot Inc., the combined company. “We recognize that the synergy with ESG has been crucial to our smooth integration of Office Depot and OfficeMax.” This year, Newhall expects to focus on working more with private equity firms, who are funding the acquisitions. They want speed and they don’t want to waste money on a learning curve. “Part of my role is to be extremely objective, functionally neutral between the two companies,” he said. “That is the big part of what we get counted on for – we come in and evaluate what is the thinking and what are the outcomes you want and when.” Printer Friendly Version ESG contact Media Relations mediarelations@esgimpact.com [...] Read more...
May 8, 2018ESG is Sole Denver-based Organization to Receive Client and Peer-Nominated Distinction. Execution Specialists Group (ESG), a strategy execution-focused consultancy, today announced that the organization has been named by Forbes to its list of America’s Best Management Consulting Firms for 2018. Just ten years after its founding in Denver, 2018 marks the third consecutive year that ESG has appeared on Forbes’ annual ranking of the highest rated consultancies across all sectors and functional areas. ESG is among just over 200 management consulting firms nationwide to earn a spot on the list and the only firm headquartered in Denver. “What continues to make ESG’s appearance on the Forbes list such an honor is that the ratings are taken from more than 1,000 clients and more than 7,500 other management consultancies. To receive the recommendation of peers and senior executives is tremendously meaningful to me and our entire team,” said Mark Newhall, founder and CEO, ESG. “Among the consultancies on the list, we feel ESG is extraordinarily well-positioned, not only in its depth of strategic expertise, but also in its place as one of Colorado’s most unique and capable homegrown organizations.”   To compile its list, Forbes partnered with market research company Statista to survey partners and executives of management consultancies, as well as senior executives who had worked with such firms over the last four years. Respondents were asked to recommend consultancies across predetermined sectors and functional areas and firms with a disproportionate number of recommendations were organized into star ratings. 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 three years (2016-2018), ESG has consistently delivered on client transformation 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 Advance Auto Parts, Caesars Entertainment, Gordon Food Service, Office Depot/OfficeMax, Target Corporation, Whole Foods and more. To learn more about ESG, visit www.esgimpact.com Media Contact Jennifer Levasseur (720) 235-0816 x399 mediarelations@esgimpact.com Printer Friendly Version [...] Read more...
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...
May 11, 2016FOR IMMEDIATE RELEASE DENVER, Colorado— Execution Specialists Group LLC (ESG) has been named by Forbes as “One of America’s Best Management Consulting Firms” in April 2016. This annual list identifies top management consultancies that provide businesses with superior guidance in their respective practice areas. ESG, a Denver ­based consultancy focused on strategy execution, was recognized as one of the nation’s leading management consulting firms in the area of business strategy alongside 60 industry peers. “We’re extremely honored by this recognition”, said Mark Newhall, ESG Founder and Chief Executive Officer. “To be nominated by our clients and endorsed by our peers across multiple business sectors is a tremendous validation of our commitment to client success. Our team continually strives to provide the best and most practical value possible in strategy development, which is never complete without disciplined and rigorous execution.” To compile this list of honorees, Forbes collaborated with online statistics provider Statista. Firms were considered based on lists of associations, consulting directories, competitions and company databases, as well as through the PR and marketing departments of 50 large management consulting firms. Results are based on surveys of 7,286 partners and project managers from management consultancies, and 1,316 management consultancy clients. Executives participating in this survey were asked to recommend consultancies based on a list of industries and functional areas in which they have worked with a consultancy during the last four years. ABOUT ESG Founded in 2008 in Denver, Execution Specialists Group (ESG) is a strategy execution­focused 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. ESG contact Media Relations mediarelations@esgimpact.com   printer friendly version [...] Read more...
April 28, 2017Execution Specialists Group LLC (ESG) has been named by Forbes as one of “America’s Best Management Consulting Firms” for the second year in a row. This annual list identifies top management consultancies that provide businesses across sectors with the best guidance in their respective practice areas. ESG, a Denver-based consultancy focused on strategy execution, was recognized as one of the nation’s leading management consulting firms in the area of business strategy. “We are extremely honored to be recognized for a second year in a row,” said Mark Newhall, ESG Founder and CEO. “Being named to this list not only demonstrates third party validation of our value promise, but to be nominated by our clients and peers means we are delivering on our commitment to make strategy happen. I am proud of the continued efforts by our team to deliver meaningful client outcomes and the enhanced culture of execution they leave behind.” To compile this list, Forbes collaborated with analytics company Statista. The lists of the Best Management Consulting Firms are based on two surveys: a colleague survey of more than 7,000 consulting experts (partners and project managers from management consultancies) and a client survey among 1,100 senior executives, who have previously worked with management consultancies. The client survey asked the executives which industries they worked in, and then prompted them to recommend the best consulting companies in those sectors. The ranking is comprised exclusively of consultancies that have a sufficient number of recommendations. 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 of 2016,” 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.   ESG Contact: Jennifer Levasseur mediarelations@esgimpact.com [...] 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...