Case study 1 When Consultants and Clients clash

When consultants and clients clashWhat is the situation ?

The two companies Kellogg & Meyer and Champion Securities decided to merge. After the merger, the CEO, Royce Kellogg engaged the Statler Group as consultant

Kellogg & Meyer

Kellogg & Meyer

New company

New company

Champion SecuritiesChampion Securities

MERGER

Two company identitiesTwo cultures

Two business models

Two managements

Kellogg-Champion Securities’ situation :

The CEO asked consultants to blend policies/ practices of the two former companies but he has a precise idea of what he expects and what he absolutely can’t accept.

Fusion between the two firm was quickly organized and finally it is not effective

The new Kellogg-Champion CEO is quite conservative and has a very personal view of his company. Moreover he lacks in people touch.

When consultants and clients clashWhat is the situation ?

Too much discrepancies between the two companies.

Consultants’ situation :

There was no transmission of information after the project signing

Barlow did not spend enough time to prepare her meeting with Kellogg

Fusion and Acquisition field was a new consulting domain for Barlow and securities industry was a big target for Statler Group.

The consultants took account all what the CEO said without asking any details and overall without any critical mind !

Consultants never spoke about their doubts and never asked questions.

When consultants and clients clashWhat is the situation ?

“ The kick-off meeting were informal. They listened to the

CEO and exchanged about weather and other informal things and then they left.

They did not dig deeper than the speech of Royce Kellogg

and it’s why they discover (quite violently) the reality.”

When consultants and clients clashWhat is the situation ?

Common situation : Are there perceived incompatible goals ? Lack of understanding ?

Consultant’s work is not well understood by employees. They can’t know the company culture because of their lack of relationship with employees.

The planning implemented don’t look realistic .

The company was not informed of the change in consulting team.

There was no real chief in the company.

Who are the companies’ key leaders ? Who makes the decisions ? Who are the direct and official spokesmen of those companies ?

The CEO and the consultant come from different backgrounds :

The Origin of the conflict

CEO

self-made man

Practical

charismatic leader

Consultantinexperienced

in M&A

she is unsure of how to approach this problem effectively

lack of independency

The Origin of the conflictThe companies’ responsibility

Management issues :

The CEO is feared and convinced to have made a successful merger

Inefficient post-merger management

Absence of long-term strategy

Not knowledgeable in mergers

Internal communication :

Lack of a realistic planning of the merger

Kellogg neglected to tell management and other key employees that consultants have been hired : he did not define the role and the purpose of the consultants.

They lost sigh of the original objective

Meyer’s function died with him : No organisation and HR issues manager left

The Origin of the conflictThe companies’ responsibility

Practical issues :

Lack of preparation of the case Inexperienced consultant in M&A

Communication issues :

No reports to the CEO of the consultants job CEO unaware of change in consultant No supervision of the consulting partner

The Origin of the conflictThe consultants’ responsibility

CEO unaware of difficulties

When issues arise, the consultants are blamed for them

Misunderstanding of the consultant’s presence due to lack of communication

Different expectations and mutual misinterpretation led to communication issues which started the clash

The Origin of the conflictThe Fuse consultants

Work hand to hand for a win–win situation !

Re open the dialogue and rebuilding the confidence. (meeting with the two CEO, consultants and G.Gray)

Redefine the mission of the consultants in accordance with the CEO’s of the two companies.

Explain what are the each side expectation and the way of working (frequency of meeting, way of doing meeting).

Establish the commitment of both side and a long term strategy.

Redefine, the way to follow by defining the role and status within the top managers.

What options could be explored for managing this conflict?

Suggestions

The technical aspect:

Set up methods, tool and framework for a good assessment

Create a clear schedule to conduct the mission quickly and efficiently

The lack of experience must be balanced by more preparation (Make a diagnosis of the two companies and take in account the cultural differences)

What options have been explored for managing this conflict?

The Consultants Initiatives

The communication aspect:

During interview: Be more curious, prepare questions and don’t forget the information needed

Inform themselves about mergers situations

Get help and support from senior consultant.

Find each profit that companies can get from each other.

What options have been explored for managing this conflict?

The Consultants Initiatives

Establish a clear hierarchy between the two CEO’s

Organize a meeting with the top management of the two firms to explain what is the consultant mission and what they expect from them.

Improve the internal communication

Set up a reflexion group working on the new policy.

What options have been explored for managing this conflict?The Company Initiatives

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