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MMI’S MERGER: AUTHENT

TRANSFORMATIONAL

LEADERSHIP

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INTRODUCTION

•Momentum

•Metropolitan

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BACKGROUND OF THE

MERGER

• This merger was formed in 2010 by two African’s insurer

•Provides the service in 12 nations

• ts products include asset management!

employee bene"ts! life insurance! andmanaged healthcare administration

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MERGER

RATIONALE

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#$MPA%S$& $' M$M(&T)M A&* M(T%$P

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UNBUNDLE OF SHARES

'%ST%A&*M(T%$P$+T

A&'%ST%A&*

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REDISTRIBUTION OF

SHARES

FIRSTRAND; 60%

METROPOLITAN; 41%

Char T!"#

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MARKET COMPARSION PER AND POST ME

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S(PA%AT$& $' (&TT(S

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MERGER RESER$ATION

•&o e,ect on shareholder Price

•-ho was ta.ing over whom/

•*i,erent culture

•%euired eciencies

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MERGER PROCESS

•-ilhelm van yl 3 4ision for Metropolitan• Partnership! combinations! and non5standaraliations

•4an yl and 6ruger approached each oth

•Merger tal.s were started

•7usiness Model 8 %estructuring of Portfo

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APPOINTING THE MMI GROUP CEO

•

At e9ecutive level there was vagueness due tochange process

• Trust! ntegrity! Purity of ntent 3 #onseuence*i,erent scenarios

• There could only be one #($

•*uring initial phase! van yl and 6ruger :ointlymanaged the change process

•(ventually! 6ruger became the #($

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TRANSFORMATIONAL

LEADERSHIP

• implemented a structured communicatioprocess

• They made brief which provide answer topotential uestion

• Transparency of the brief 

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IMPACT OF $ARIOUS INFLUENCERS DURING

SPECIFIC STAGES OF THE MERGER PROCESS

•+eadership communication and themanagement of organi

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ORGANIATIONAL

CHANGE

•a good organisational relationship includeach member 

•attaining such an environment is theestablishment of trust and honesty 

•while each organisational member shoul

 promote loyalty and reliability.

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ORGANIZATIONAL

CONFLICT 

$rgani

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CORPORATE CULTURE

•moment of truth for management 

• it will be visible among members of theorganisation in the sense that they willstrive to meet organisational objectives a

display positive behavior if they succeed

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MMI HOLDING

• a laser focus on messages and a solidcommitment from leadership tocommunicate with employees from both merger companies can help to assuage fprevent negative chats around the water

cooler! and ensure employee loyalty durthe sometimes turbulent M8A process>

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CHIEF INTEGRATION OFFICER’S LEADERSHIP

ROLE

•*anie 7otes was appointed as the MM chief integrat

ocer

•A true merger was a di,erent tas. as compare to ta.

•*ecision ma.ing power was a critical issue

•A recruitment drive was launched to appoint sta, to

new positions

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CHIEF INTEGRATION OFFICER’S LEADERSHIP

ROLE

•

 The main di,erences in culture e9isted in area management style

•4alues which formulated during the survey wer

accountability! innovation! integrity! teamwor.

e9cellence and diversity

• t was decided that sta, will not reduce for two

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MERGER COMMUNICATION

•

7i5-ee.ly 7rie"ng Sessions• To .ill the ?grapevine@

•%egular and timely communication builtcon"dence

•(9co delivered its promise of providinganswers

•Messages of both #($s cross5chec.ed ane9pedited

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•

?Soft@ issues were often the ?hardest@•#hange process was managed well

•Still not all sta.eholders were on5boards

•Many positions had to be rationali

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CHALLENGES AHEAD

•7oth cultures were :elling in

•And most of the e9pectations turned out to be true

•7ut there were still great challenges to cope with

• Multi5racial wor.force

• Ailing (conomy

• ncreasing )nemployment

• *ecreasing *isposable income

•6ruger was faced with a tas. to brea.5out to theemployees about structural re5organi

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KOTTER’S CHANGE MODEL

& MMI

•

#reate )rgency• Merger would add value by increasing mar.share

•'orm a Powerful #oalition

• Partnership and trust between 6ruger 8 4an

•#reate a 4ision for #hange

•#ommunicate the 4ision

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•%emove $bstacles

• (,ective communication! steering committe

•#reate Short5Term -ins

• Sta.eholders on5boarding! seamless integra

•7uild on the #hange

•Analysis after each success! continuation ofmomentum

•Anchor the #hanges in #orporate #ulture

• Structural re5organi

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THAT’S ALLFOLKS'