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MART Managers’ Conference

G. George Wallin, PhD, MBA

Vice President/Chief Operating Officer

Sherburne TeleSystems, Inc.

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MART Managers’ Conference

Our changing and yes,

SHRINKING

Telephone Industry

Mergers, Sales, and Acquisitions

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Sales, Mergers, and Acquisitions

Lakedale Hutchinson

Cannon Valley Hector Communications

And more…

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MART Managers’ Conference

So, why are all these sales happening?

What does the mid-to-long term look like?

What to do before and when

“it” happens…

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Why are these Sales/Mergers Happening?

- The predicted move to data is here- Data, not telephone is “king”- Data is an “umbrella” offering

- Data is more conducive to large entities- Staffing for data is universal

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MART Managers’ Conference

So, Will More Mergers Develop?

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Will Mergers, etc. Continue?

In My Opinion, Absolutely!

That is supported by industry analysts.

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Moving from Telephone to Data

- Capital requirements lend themselves to larger, more cash-intensive mergers

- Data provisioning requirements lend themselves to centralized support

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MART Managers’ Conference

- Simply speaking

- Data requires fewer people so consolidation is more attractive.

- The available labor force for data is much more robust than for “telephone.”

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MART Managers’ Conference

So, what can WE do about it?- We can’t change the trend but we can

influence the outcome- We can position ourselves to meet the

new culture head on

- “Culture” - the challenge and opportunity

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Culture Differences

Several personal experiences Private versus public company Large versus small company Rural versus urban company

CLEC versus ILEC

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Culture

John Mason writes in “Coping with Mergers” that as managers, we must understand - cultures WILL COLLIDE.

This WILL result in lost productivity.

Our job is to minimize the loss…

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Culture DifferencesBuyers/Sellers Vs. Managers

Those that buy and sell don’t manage Those that manage seldom buy or sell

Once a SELL or BUY takes place

“they” often have nothin’…

That’s when we (managers) have our opportunity…

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Culture DifferencesBuyers/Sellers Vs. Managers

Millions of dollars invested Millions of dollars to gain

Managers – YOU – make that happen!

Will you be prepared?

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Preparation, Preparation, and more Preparation

Before we know of a sale/merger Before we even THINK of a sale/merger

We need to do the OBVIOUS

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Contributing

Arlene S. Hirsch writes that most all “lost” jobs affect those who were rated as either duplicative or “poor performers.”

The “best performers” are usually recommended by the seller.

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Take Care of Yourself

Physically Mentally

Financially Emotionally

Professionally

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Look for Opportunity

Hirsch also writes that we must think and “speak to the future” not the past.

Patrick Moquin writes that we must be open minded and respect the “best practices” of the merged company.

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The Alternative

Remember, there is ALWAYS

An alternative.

If the stress is too much, if there are ethical questions, if too much is

expected,

TAKE THE ALTERNATIVE

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ALTERNATIVE

For those of us that chose to push forward,

to try and make it work,

to “convince” ourselves until we “believe,”- Prepare before “it” happens

- Support during “it”- Be convinced…Believe!

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Make Things Happen

If we can PREPARE – how many?

If we can SUPPORT – can you?

If we can BELIEVE – will you?

If so, we become very focused,

like a military regiment…

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Customer Service Group Conference

QUESTIONS?

THANK YOU! THANK YOU! THANK YOU!

G. George Wallin