EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Group Presentation -Change Management Group

Mahadeo, Aman, Murli, Sanjeev, Suresh, Praveen

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Content

ScopeCase FactsPost Merger People Integration

Key DNA challenges - Shift from what it is to what it should be Addressing Key People and Organization Risks Approach followed

Managing Change during Post Merger Integration Key Actions at individual & team level Addressing Key Leadership Challenges – Org alignment & Communication

Recommended Change Management Model

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Scope of the Project

To study a live M&A Change Management project

Articulate the challenges, actions and learnings

Recommend a model for successful Change Management in M&A

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Case FactsA large French MNC - cSet Telecom having strong Ethics in doing business

started operations in India and was trying to grow both organically & inorganically, and due to slow growth in the Indian Telecom market acquisitions were the only way to grow the scale of business.

After careful due diligences, cSet Telecom acquired 4 Indian Telecom Companies in a span of 3 years and successfully merged them into one of the largest & highly profitable Pan India Organization.

The Integration was led by a cross functional team from both India and France.

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Post Merger Key DNA Challenges Faced

What it is in (acquired organizations) What it is required to be (integrated organization)

Doing business any how Doing business by design with defined processes

Managing Compliance Doing Compliance

Ethics at convenience Ethics by design and compulsion

Trouble shooting /fly by the seat of the pants Systemic approach & improvement driven by competence

Individual pockets of excellence Sustainable performance through Collaborative Team Approach

To Create a shift through series of interventions

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Post Merger People Integration – Key Risks to be Addressed

• Benefits/Reward/LTI/Accrued leaves/Termination benefit/Retiree People Cost Risk

• Work structure – Direct reporting or Matrix/optimization of work force - right sizing/ Redefinition of roles & accountability matrix

Structure Risk

• Key talent retention/ Harmonizing talent management & reward processTalent Risk

• Leadership Style/Decision making process/Work style/Change receptiveness/Belief around individual & group success

Culture Risk

• Employment contract/Labor law agreements & ComplianceRegulatory Risk

• Employee motivation

• Cross functional collaboration Engagement Risk

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Approach Followed

Plan Analyze Design Build Test Deploy

Awareness Understanding Acceptance Commitment

Communication 1Communication 2

Communication 3 …

September October November DecemberJuly August January

A well thought through Change Management & Integration steps encompasses both cultural & business processes aspects Clearly defined and communicated accountabilities of various stake holders and rigorous follow through and periodic review

mechanism Highly inclusive & collaborative approach of the integration team led the desired changes successfully.

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Managing Change at Individual Level – Build Bridges, Trust… Communicate… Celebrate together

Stage of M&A Employee Experience Change Management Response

Merger announced Shock , disbelieve, & relief that rumors are confirmed

Provide early communication with aim of merger

Specific Plan announcement Denial , mixture of excitement & anxiety

Discuss implication and upside of merger for individual & teamsGive clarity of new Org structure & roles in new organization

Changes start to happen –new Manager , New Colleagues , old Customers though

Finally accepting the new Org Team engagement , Celebrations together , new role clarify , announcement of new Organization structure & sign off of new G&OsFoster development of new merged team Coaching /Mentoring/Training of new skills ,

New Org begins to take shape

Trying new things outFinding new meaningOptimization

Facilitate/foster two way communicationsExcellence through Ethics & induct new ways of doing businessReview and consolidate the outcome of changes Celebrate success together..build & strengthen bridges

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Managing Change at Team Level – Key Stages and Actions DoneStage Team emotions/Activity Possible Change Mgt Response Time lines –

after announcement of deal

Challenges faced Solution /Course correction

Forming •Confusion/Uncertainty•Assessing Situation•Testing Ground Rules•Defining Goals & Establishing Rules

•Clearly define roles and responsibility•Define key customers for the team and begin to agree on new ground rules for how the team will work together•Discuss team background in terms of previous structure , processes and culture

•1-2 week • Approach of doing business any how v/s doing business with Ethics and by process

• Co created new Vision , Core Principles

• G&O workshops • New Org structure evolve through

collaborative approach

Storming •Disagreement over priorities•Struggle for Leadership•Tension & Hostility

•Conduct joint workshop /discussion sessions to resolve issues relating to structure, processes and culture•Clarity on direction and purpose of the team

•3-4 week • Ego and Power centers

• Strong Silos with in Teams

• Drive V/S Lead

• Solos bridging NOT BRUSTING• Effective facilitation of building Co

created Purpose & mission , priorities to succeed - TO BE RAOD MAP

• team building activities along with workshops large scale interactive events

Norming •Consensus•Leadership Accepted•Trust Established•Standards Set

•Develop a decision making process•Maintain flexibility by reviewing Goals and processes

•5-6 week • Ownership crisis• scared of

consequences

• co created accountability matrix for business success & effective implementation

• Sign off of new processes , performance metrics & reward system

Performing •Successful Performance•Flexible Task roles•Openness & helpfulness

•Encourage delegation more frequently•Encourage Collaboration and innovation

•7-8 week • Pain of letting go• score over others • Insecurity of

reward & recognition

• implementation of Transparent Reward & Recognitions

• Team work given higher weight & recognized over individual pocket of excellence

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Managing Change Post Merger – Optimizing & Aligning Org Structure

cSetTelecom

structure + Operations

& Corp. support

functions

Atlanta Tele – 4 Circle

structure + Operations

& Corp Support

functions

Zimba Tele– 12 Circle structure + Operations

& Corp Support

functions

Sinhua Tele-12 Circles

structure + Operations

& Corp Support

functions

HO FunctionsRegional Head

- East

Regional Head

- West

Regional Head

- North

Regional Head

- South

O&M Regional O&M Regional O&M Regional O&M Regional O&M

Project Regional Projects Regional Projects Regional Projects Regional Projects

Site Acquisition RF & Colo RF & Colo RF & Colo RF & Colo

Sales/RF/NAMs &

Collection

Regional Sales &

Collection

Regional Sales &

Collection

Regional Sales &

Collection

Regional Sales &

Collection

Sales/RF/NAMs &

CollectionEstate Mgt Estate Mgt Estate Mgt Estate Mgt

HR & Admn. Regional HR Regional HR Regional HR Regional HR

Legal , Regulatory &

CSLegal Legal Legal Legal

Finance & Accounts Circle Head (3) Circle Head (3) Circle Head (4) Circle Head (4)

O&M/Project/Logistics

/Cluster Mgt./Site

Acquisition/Sales &

Collection

O&M/Project/Logistics

/Cluster Mgt./Site

Acquisition/Sales &

Collection

O&M/Project/Logistics

/Cluster Mgt./Site

Acquisition/Sales &

Collection

O&M/Project/Logistics

/Cluster Mgt./Site

Acquisition/Sales &

Collection

Chief Executive Officer

Chief Operating Officer

Org optimized into hub & spoke structure - Four Legal Entities operationally aligned into one India unit. Overall optimization of 55% employee strength through Integration of 4 entities.

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Communication - a key differentiator in successful Change Management & Cultural Integration - “Say what you are doing and do what you are saying”

Communication from Business Leader

• Emphasizing the key outcome of deal benefiting both employees & Company

Town Halls , Workshops – Aligning Teams with changes and action plan

• Business Integration Call /meetings anchored by Leadership Team with in one week of deal announcement for all employees to communicate Integration plan

• Workshops to integrate / inculcate new business processes

Culture & Ethics Training Sessions to integrate Culture

• All new team members covered under Values & Ethics sessions

Business Process Integration Meets

• Regional Sales Meet to align the team with integrated Sales Process and finalize new G&Os of combined portfolio

• Process Integration meet with HO & Circle Team to finalize and cascade SOP of key business processes

New Goals & Objectives & Accountability Matrix Sign off

External Speakers to emphasize the new business perspective and value proposition for external customers & internal team

Recognize Effective Change Leaders and Value Custodians Rewards & share success stories

Continuous communication and large scale people engagement were the biggest enabler in making this integration successful

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Recommended Model for Change Management in M&A

Scoping

• Defining Vision of M&A

• Enlisting Key benefits

• Defining “Go” & “No Go” zones

HR Due Diligence

• Risk identification

• People cost/Structure/Talent retention/Culture/Regulatory

People & Organization Integration

• People Cost

• Talent Retention

• Regulatory Risk

Change Institutionalization

• Structure Risk

• Culture Risk

• Engagement Risk

Change Reinforcement

• Reward desired behavior

• Process & people collaboration resulting in to desired optimization & high performance

Integrated, Aligned, Efficient & Profitable Organization

Risk Heat Map

Integration & Change Management action planning to be done for individual & at team

level based on the Risk Heat Map...

Visioning

Relating

Building & Executing

Sense Making

4-Cap

Model

Lead Sig

Source : Sloan Leadership Model© 2011 D. Ancona & KPMG Analysis

EPGM 2013-2014 Change Management GroupLegal Disclaimer – The case is confidential and the content of the presentation is purely individual views of the group and does not represent the case organization.

Questions ….

A bigger risk…….