Posts Tagged ‘politics’

Uncommon Business Integration

Thursday, August 20th, 2015

So you are the proud owner and as CEO, guardian of the new combined business, the hard work now begins, turning the reasons why you bought the business (investment thesis) into an organisational reality.

You assemble the executives and managers in both firms with guidance on the strategic vision, financial synergies, operations, talent and culture. In all likelihood, they have interacted briefly to exchange information in the due diligence, negotiation and closing phases but they have rarely got to know each other on a personal basis.

How each party sees that you handle that first integration meeting in most cases creates an indelible impression for the ensuing relationships, the level of commitment to your objectives and your probable success.

Knowing “what to do” and “how to do it”, is largely a mixture of art and science for most leaders. “Art”, in the sense of gut feel and good judgement in creating a welcoming environment for the newly acquired executives and managers. “Science”, in the sense of knowing precisely like choreographing a play “what” business outcomes must be prioritised, “where” to devote time productively, “when” you must accelerate the conversation (agreed action points) or intervene to bring circular conversations to a close and “why” a chosen integration alternative is appropriate.

Here is seven “integration killers” you want to avoid in that first meeting of the “new” colleagues:

1. Ambiguous and Unclear Meeting Invite. The focus needs to be on performance-based priorities (crystal clear business outcomes) not tasks and activities (“getting acquainted with each other”).

2. Inviting Wallflowers. Peers want to meet, talk and reach agreement with peers or possibly employees who are one grade above. They don’t want to converse with subordinates, who cannot contribute meaningfully and do nothing more than to act as a “posse” or mute cheerleaders for an executive or senior manager.

3. Enabling People Who Arrive With An “Agenda”. Nothing kills an integration meeting like an HR person from the acquiring company, who arrives with an arbitrary alternative (“non-negotiable” policies and procedures) to force the newly acquired employees to comply to their process without first listening to and collectively examining whether it makes sense. The real crime is the facilitator who allows them to make a speech and enables their passive-aggressive behaviour.

4. Leaders Whose Behaviour Precisely Undermines The Meeting’s “Rules of Engagement”. If the understanding is that PDA’s and phones are to be switched off until the scheduled break, there is zero excuse for the leader, who blatantly ignores the rule. What the leader’s behaviour says to the other participants is “this discussion is not my priority”.

5. Kick off at the wrong starting point (integration alternative). Any discussion must start with “what is the desired business outcome?” (rapid reduction in business acquisition expenses), “what are the integration alternatives?” (adopt Company A or B’s sales approach or develop a new approach), “what is the risk and reward attached to each alternative?”, and ends with “what action is required to rapidly and effectively implement the preferred alternative” (next steps). Nothing else.

6. Priorities are given an arbitrary score (“7”) or (“High”). Organise and separate priorities into three headings (“GSI”): “Gravity”, what is the gravity of the issue? “Speed”, how fast does this need resolving or improving? “Impact”, what is the actual or potential impact on the firm’s future? Use actual descriptive sentences not scores.

7. Lack of definitive “next steps” with agreed action points (“I’ll discuss this with the COO when I next see him”). Every action point must have a time, date and accountability given to it with an understanding of the supplementary action to follow.

My observation is that most first integration meetings start with the very best of intentions. Where they go awry is that the meeting chair and participants overlook the importance of speed as well as quality. “Speed” in terms of, for example, identifying decision-making shortcuts that enhance the quality of the results (more impressive financial synergies, happier customers). “Quality” in terms of asking the right questions in the integration meeting to enhance the “speed” of accomplishing the desired business outcomes (ease of implementation, reduced risk).

© James Berkeley 2015. All Rights Reserved.

7 Reasons To Celebrate London

Tuesday, July 7th, 2015

Today London remembers, 10 years on from the scenes of death and destruction. A city that I have called “home” on and off for 30 years. On 7th July 2005, I was at The Snow Ball in Queenstown, New Zealand with a group of friends when images flashed up on a video screen of the carnage across the city. It seemed distant and surreal in equal measure. What was the bombers’ point? The subsequent alert two weeks later and the manhunt when I was back home are a more vivid memory.

The test is what a city and its’ residents do about it.

Looking around London today, London is thriving. A global metropolis that has

  1. Attracted huge swathes of capital from across the globe.
  2. Unprecedented career opportunities for many people.
  3. The most diverse, talented and creative workforce with a global mindset.
  4. One of the most civilised, safe and secure environments to live, work and socialise in.
  5. The most compelling mix of contemporary culture.
  6. Retained its’ status as one of only two true “global cities” (the other being New York).
  7. The most exciting prospects for the next generation to grow up in.

As with all growing capitalist cities it faces distribution challenges. Adequate housing, infrastructure, health and education provision for all incomes.

The “high” security threat is a badge of honour, a reflection that those with incongruent values seek to cut down the tallest of poppies. We must hope that our security forces and intelligence are one step ahead of those who seek to destroy what we have. Can we be certain? Of course not. My memory flashes back to the early part of my career, the IRA atrocities across the city, the daily roadblocks outside my EC3 office and further afield to New York, where several of my former colleagues from my days working on 104th Floor of the World Trade Center perished.

Yet we celebrate the vibrant, innovative and exciting city we call “home” and the fantastic future it provides for our families, friends and colleagues.

© James Berkeley 2015. All Rights Reserved.

Are You Thinking What I Was Thinking IV

Thursday, January 29th, 2015
  • Apple announces record quarterly profits and unprecedented growth in China and news organisations (BBC, CNN, CNBC) immediately fire bullets at the Company’s tax policies rather than celebrate or understand their success
  • 50 years on from Winston Churchill’s death I am hard-pressed to nominate a world leader today who is fit to tie his bespoke John Lobb shoelaces
  • In a era of big data and predictive analytics our ability to predict catastrophes accurately (winter storms in New York, radical Greek political machinations and so on) is still very suspect
  • We rush to judgement on so much that we know so little about (celebrity relationships, diets, climate change)
  • We omit to think about and take action about matters we know an awful lot about (our own behaviour, our state of overwhelm, our time management)
  • There is 256 variables that life insurers apply to determine your life expectancy, at any one time we probably focus on a maximum of 5 health and well-being improvements, why worry?
  • Stock markets and major indices are largely set for another impressive year of growth, all this with a global war on radical Islam, strife in the Ukraine, hunger and pandemic diseases in Africa and the Indian subcontinent
  • Breaking point: Superbowl Sunday 30-second halftime ads are 100 times more expensive (US$4.5 million) and viewership in the US has only tripled since 1967
  • Major cities such as New York, London, Mumbai and Shanghai have invested record amounts in transportation infrastructure, yet the improvement in the time taken to cross the City can be measured in seconds rather than minutes
  • Seven years of quantitative easing while helpful to global trade, has created asset bubbles (London real estate, global art market), where market makers and investors need to tread extremely carefully
  • Award ceremonies (Oscars, Grammys, BAFTA etc.) are more about the participants vanity than the quality of the work created
  • London feels like the centre of the world when nations such as Qatar are now the largest real estate owner and you can walk into a West End eaterie and hear 25 languages spoken on a Wednesday evening in January
  • We are in a period of unprecedented global growth yet the media would have you believe we are stuck in an economic vortex (woe in Europe and US, slowing Chinese consumer demand and insipid Japanese industrial output)
  • 2015 will see an unprecedented level of merger and acquisition activity driven by convergence of capital, distribution and technology leaving few business niches untouched.
  • Businesses are going to have to take up the slack educating and generally readying (on the job training) new entrants to the workforce in response to gaping holes in the quality of public education in North America and W. Europe
  • “Data rights” are going to be as valuable as mineral, land, media or image rights in the next 5 years, and just as contentious, when companies such as Google and Amazon seek to monetise the data in ways we never envisaged

© James Berkeley 2014. All Rights Reserved.

An Interview With Me From TheStreet

Monday, November 17th, 2014

TheStreet’s Taiwan-based reporter, Ralph Jennings, interviews James about the implications for International businesses with China’s rapidly expanding space program:

“Which Aerospace Firm Will Help China Reach The Red Planet By 2020?”

http://www.thestreet.com/story/12929743/2/which-aerospace-firm-will-help-china-reach-the-red-planet-by-2020.html 

An Interview With Me From The Street

Monday, November 17th, 2014
The Street’s reporter Ralph Jennings interviews James which private sector businesses are likely to gain from President Obama’s latest trip to China and the short-term impact on their market presence:
“Obama’s China Meeting to Boost Travel, Helping Hotels and Airlines.”
http://www.thestreet.com/story/12950371/2/obamas-china-meeting-to-boost-travel-helping-hotels-and-airlines.html