W. M. Keck Observatory’s Next Generation Adaptive Optics (NGAO) Facility
ModalMinds Next Generation M&A
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ModalMinds Next Generation M&A The SIM™ Method Webinar
description
This deck supports the Next Generation M&A Webinar series at https://www.youtube.com/user/ModalMinds
Transcript of ModalMinds Next Generation M&A
ModalMinds Next Generation M&AThe SIM™ Method Webinar
Contents/Agenda
The Problem with M&AThe Next Generation Approach: SIM™
Head – Deal DoctrineShoulders/Heart – Free Will & AdoptionLegs – Tactical and Physical Execution
Response - Action & Accelerators
The Merger & Acquisition failure rate continuously averages 70%
Why the Traditional M&A Model struggles“Deal Jockeys” Set the ToneValuation and Financial Focus ($)Negotiations and Legal
Incomplete View of Deal DynamicsPlanning and costs are disconnected from typical integration lifecycle
The Problem with M&A
Traditional Models still under-estimate the role of “effective integration”
Financial/deal focus leads to 2 major gapsImproper or Incomplete DriversSudden Integration Handoff
Skill-set defeasanceHolistic business overviewTransformative opportunityChange management
The Problem with M&A
These two (2) chasms are consistent barriers to M&A success
Improper or incomplete driversIgnore the role and issues around “NewCo”Deal-driven synergies miss post-close complexity
Sudden integration handoffTransition equates to a toss over the wallSkills and method rely on standard PMO, program management
The Problem with M&A
Where are experienced practitioners falling short?Core ingredients remain the same, but the recipe must be adjusted – timing, quantity, focusCorporate Development remains disconnected from post-close execution – relying on standard program management and PMI-like capabilities
The Problem with M&A
Where are experienced practitioners falling short?Core ingredients remain the same, but the recipe must be adjusted – timing, quantity, focusCorporate Development remains disconnected from post-close execution – relying on standard program management and PMI-like capabilities
The Problem with M&A
M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughoutThree (3) Layers
Doctrine and dogma of the dealScale of adoptionExecution
The Next Generation Approach
The Problem with M&A - Summary
The Merger & Acquisition failure rate continuously averages 70%Traditional Models still under-estimate the role of “effective integration”Two (2) chasms are consistent barriers to M&A successExperienced practitioners are still falling short
The Merger & Acquisition failure rate continuously averages 70%Traditional Models still under-estimate the role of “effective integration”Two (2) chasms are consistent barriers to M&A successExperienced practitioners are still falling short
Contents/Agenda
The Problem with M&AThe Next Generation Approach: SIM™
Head – Deal DoctrineShoulders/Heart – Free Will & AdoptionLegs – Tactical and Physical Execution
Response - Action & Accelerators
M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughoutThree (3) Layers
Doctrine and dogma of the dealScale of adoptionExecution
The Next Generation Approach
Strategic Integration Model ™ - The HeadFunction: Defines the doctrine or dogma of the dealComponents1. Strategy2. Structure3. Leadership4. Communication
InterlockLayer 2, Adoption Free WillLayer 3, Execution Program Management…
The Next Generation Approach
Strategic Integration Model ™ - The Shoulders/HeartFunction: Stage and scale adoption of stated deal doctrine
Free will influences each participants’ response in their role
Components1. Scale of adoption to evaluate integration participants2. Awareness – Participants have been notified of the deal3. Assessment – Participants determine their reaction4. Adoption – Actions align with Strategy and Structure
InterlockLayer 1, Doctrine CommunicationsLayer 3, Execution IMO plan and progress is influenced by where key players land and move along the scale
The Next Generation Approach
Strategic Integration Model ™ - The LegsFunction: Physical and tactical execution of the strategy
Including discovery, planning, management and workstreams
Components1. Non-financial discovery and due diligence2. Charter and Playbook development3. Integration Management Office and Plan4. Workstream activities
InterlockLayer 1, Doctrine CommunicationsLayer 2, Adoption Free Will
The Next Generation Approach
M&A success requires a modernized method Strategic Integration Model™ addresses deal execution in a logical structure, based on strategic alignment throughoutThree (3) Layers
Doctrine and dogma of the dealScale of adoptionExecution
The Next Generation Approach - Summary
Contents/Agenda
The Problem with M&AThe Next Generation Approach: SIM™
Head – Deal DoctrineShoulders/Heart – Free Will & AdoptionLegs – Tactical and Physical Execution
Response - Action & Accelerators
Impacting Strategy and StructurePre-Close
Align corporate structure to strategy – Leader Adaptability IndexDefine IMO teams, leaders and incentivesDeliver complete Communication Plan
Post-CloseEstablish 360 Degree Feedback process Execute brand management strategyExecute functional training plan (Continuing Ed)
Actions & Accelerators
Obtaining and Tracking AdoptionPre-Close
Leadership assessment, mid-level coverage Cultural assessment surveyFunctional gap analysis
Post-CloseLeadership evaluation (90d, 120d) Customer/Partner adoption review
Actions & Accelerators
Facilitating ExecutionPre-Close
Ratify workstreams, scope, schedule and budgetDefine Levels of Authority and commitmentEstablish war room and IMO status reporting
Post-CloseExecute reporting and recoveryNewCo Transformation Review (90d)
Actions & Accelerators
Closing the gaps – prescriptive actions and accelerators
The Next Generation Approach
Level Pre-Close Post-Close1 Deal Strategy • Leader Adaptability Index ™
• Communication Plan• IMO Incentive Plan/Funding
• 360 Degree Evaluations• Brand Management Plan• Functional Training Plan (CE)
2 Adoption • Mid-level Leadership Assessment• Cultural Assessment Survey• Functional Gap Analysis
• Leadership Alignment Reviews• Customer Adoption Survey• Partner Adoption Survey
3 Execution • Integration Charter, Playbook & Plan
• Defined Levels of Authority• Establish Integration
Management Office & IMO War Room
• Structured IMO management with clear escalation and recovery paths
• NewCo Transformation Reviews
EVENT DRIVEN TRANSFORMATION. PROVEN LEADERS. MEASURABLE RESULTS.
What Works in the Field
For more information, contact:
ModalMinds [email protected]
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inc.
M&A Leadership
Strategy Execution
Operational Integration
Business Process Optimization
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