Latest opinion piece from The Agile Gorilla for your thoughts, ideas and critique. As with much of what we write, how your personal experiences correspond / or jar with this approach is where the real value sits.
The final chapter (for now!) in our series on the unwritten rules of post acquisition integration. We’ve explored programme structures, leadership teams and the approach to acquired leaders and the fable of the business case!
This last one is focused on the old favourite. We at Agile Gorilla think that this is as much to do with external consultants being able to understand cost line items much more easily than growth opportunities (which by the very nature require a more detailed, intricate understanding of the underlying business) as it is with an obsession with the short term deliverable.
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All that is written cannot be changed…the tablets of stone of the business case!
In what other walk of life can you imagine a situation where the thoughts, analysis and assumptions of one person (or perhaps a small team), drawn up before any access to the subject matter was granted and therefore based entirely on an ‘out to in’ perspective are entirely inviolate?
…all because this was the rationale presented to shareholders on the day that the deal was announced?
We’re not talking about the direction of travel here, some broad sense of where strategic benefit might exist, that would hardly do. No, this requires deep competitor analysis, cost and revenue synergies to the $ and integration costs calculated to the cent.
Imagine a similar scenario in the purchase of a house…so that you need to predict what the potential energy costs were not on the day of purchase but in 5 years time, after you’ve extended the kitchen, done the loft conversion and built the conservatory?
Or in the drawing up of a new supplier agreement, where, before you sign, the former needs to give you an accurate assessment of their particular market in 5 years and what position they will be occupying, in order to remain your preferred partner?
Since when were our strategy consultants (internal and external) given the gift of seeing into the future? And what does our over-reliance on some expensive fiction, well written by clever people say about our ability to adapt, review and react to market changes? Surely that is a much more important capability in today’s market of disruption and innovation.
Certainty of outcome is not based on the effort put in or the capability of the author…it is based on the adaptability and implementation /execution skill deployed!
Let’s accept that the $ financial model is flawed; identify assumptions and re-baseline post completion. You’ve got an opportunity to jointly re-create the plans with openness and transparency which enables some buy-in… pretty important if you’re expecting them to deliver what you’ve committed to!
As ever, comments are welcome…this is reasonably controversial so please tell me if you think I’m wrong!
The latest piece from my colleague, David Boyd, on the potential benefits of delivering deals internally rather than relying on expensive, external, experienced but rarely independent consultants. Worth a read as always…comment and critique welcomed!
A view from the Agile Gorilla on the challenges for acquirers who are looking at M&A as a strategic option. It turns out that those who are doing a ‘few’ have the most challenges, not necessarily those who are starting out in the world deals.
As ever, I would appreciate your comments, thoughts and ideas.
Morning all, thanks for all your encouragement and various messages from last week…I appreciate all of it enormously and I’m excited about the opportunities for our baby going forward.
Here is a link to an article written by my colleague, David Boyd. He captures beautifully the inherent conflict between the behaviour which we’re expected to exhibit in our corporate lives and that which is critical for our daily survival….characterised by Daniel Kahneman respectively as System One and System Two. Specifically the expectation that we can morph easily between these as a matter of choice, and that any other behaviour is a sign of a lack of commitment or poor practice!
Little wonder perhaps that employee engagement levels are at an all time low and in the UK specifically, we continue to struggle with productivity.
As ever, any comments / thoughts / ideas are welcome. You’ll find this and other articles related to our new venture, ‘The Agile Gorilla’ if you click on this link.