The Impact of Change Management When Applied to Corporate Transactions
Recently, I have been reflecting on a few of the transactions I have been privileged to be a part of, including working with a couple of companies in their pursuit of going public. Aside from the required regulatory elements and routine transaction-related steps, my mind keeps going back to the role that change management plays in these types of projects – and how its impact can really be the key to success. I am referring specifically to the change management framework that is often applied to projects; often ones that have a significant human impact.
Change management, such as the certification offered by Prosci (i.e., the Professional + Science Methodology), “drives change success by preparing, equipping and supporting individuals to thrive through change”. Put simply, if we apply a change management framework to our projects and prepare our people for the upcoming change so that the change is successfully adopted, our desired project outcomes will be delivered as people are the common denominator for achieving intended outcomes.
In many cases, such as preparing to go public or when managing a carve-out or divestiture, the tricky bit is planning for change ‘behind the scenes’; that is, not all members of an organization may have full knowledge of the upcoming transaction at play. Ensuring the change plan incorporates all aspects of the organization’s human impact needs as well as the key stakeholders that will drive its success make the planning component all the more difficult. In many cases you will require your key people in critical roles to assist with the transaction but may not be able to engage with them until the intended transaction is publicly announced. Ensuring there is ample support to transition the organization or project from its current state to future state is key. To do that, the change management framework you apply and the plan you build must take an analytical approach and consider areas which traditional M&A often overlooks in the corporate transaction process from people and values to business processes and technologies.
As with any organization and on any project, it is important to be flexible and apply an appropriate lens to your change plan. Different organizations adopt change management in different ways – usually depending on business need as well as culture and structure. Per Prosci, organizationally, change management is “a leadership competency for enabling change within … an organization and a strategic capability designed to increase our change capacity and responsiveness”. Therefore, applied flexibly, responsibly and with the right ‘touch’ your next corporate transaction will truly be successful both in terms of business outcomes as well with your team.
Bichon Associates 