Mergers
commonly cited rationale for organisa- tional merger or integration. In an economically shrinking public sector, it is perhaps no surprise that we see a heightened amount of policy and spec- ulation about this type of change within the NHS.
Making the right fit T
Darren Leech offers an insight into the leadership qualities required when taking an organisation through a merger or integration process
he pursuit of economy through scale, or greater effi- ciency by integrating and refining business processes, are two of the most
the weaknesses on each side and to help integrate and inspire people behind an exciting, unifying vision of the future – rather than leaving them to take comfort in separate pasts. To achieve this, a management style must be adopted that involves people in activities centred on owning and understanding the new vision. Uncertainty during organisational turbulence causes enhanced levels of
While managers may not be able to influence the environmental factors that drive such change, they need to be aware of the ‘hard’ business risks involved.
There are also a number of important
‘softer’ cultural considerations to think about, particularly when leading people through it. Many of the hard business risks that are relevant when bringing two or more organisations together are shown in the table below.
These risks are usually easily described using numbers and clear language, all of which need to be communicated as part of a managed process of integration.
Cultural issues That’s easily said, but sometimes organisational integration projects fail, not because the numbers are incorrect but because the important softer issues are often overlooked. These issues primarily relate to people and organisational culture and they are harder to quantify and describe as risks. However, they are important considerations for those managing and leading organisations through a strategy of merger or organisational integration. Psychologically, the ‘them and us’ factor will need to be addressed. People from each part of the new organ- isation will have had an embedded cultural stereotype or image of the other party. Leaders will need a good level of self-awareness to acknowledge
‘Leaders operating in an environment of merger or integration must be people who thrive and gain motivation from continued learning and change’
stress and ‘the management’ can often become a target for frustration – partic- ularly if symbolic changes are made, such as relocating a service or group of staff. Leaders will need a higher than average level of emotional strength. They will also need a well thought through and supported personal plan for developing and maintaining their emotional resilience over time. Above all, leaders operating in an environment of merger or integration must be people who thrive and gain motivation from continued learning and
Hard business risks
● Non-alignment of organisational information systems ● Sub-optimal geographical configuration ● Management of changes to capacity and demand ● Changes to customer and/or supplier relationships ● Clarity on branding and reputation within the market
change. Those who seek continuity and comfort through stability and order are more likely to fail.
In an environment where ambiguity and uncertainty may prevail, leaders will need to relish sculpting a new vision and be comfortable in the knowledge that long-held loyalties and organisa- tional values will be challenged and often changed.
Areas affected by organisational merger or integration will need NHS leaders who can not only keep check on the delivery of hard financial benefits but also manage the softer aspects of bringing together groups of people. ■
● Darren Leech is executive director of delivery at the Princess Alexandra Hospital NHS Trust in Harlow, Essex. He is also a researcher at the Ashcroft International Business School, Anglia Ruskin University, Cambridge
www.ihm.org.uk | June 2010 17
PHOTOGRAPH: FOTOLIA Feature
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