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Stephen Wise Blog

Integration Professionals. We dramatically improve traction.

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$1 B Annualized Cost Savings from United Technologies Merger

United Technologies has proposed a merger and acquisition of Raytheon for a combined company valued at more than $100 billion. The architects of the deal have analyzed the strategic rationale. One of the quantified success metrics they announced is synergy of economies of scale leading eventually to $1 billion in annual cost savings.

Unfortunately, deal track records are not so good. According to The Art of M&A (Reed, Lajoux, and Nesvold), 55% of all mergers fail to deliver on the financial promise announced when the merger was initiated.

Why do 55% of all mergers fail to deliver?

Most assume that ensuring the deal success is the domain of the advisors, accountants, lawyers, and bankers. However, once the deal closes, management is left to deliver on the expectations and promises. I am convinced that the single biggest factor of merger failures is the lack-of a CEO sponsored Integration Program lead by a Project Manager.

Why is that?

Most post-merger activities run behind schedule. I believe a root cause is managers are assigned many of the activities as “business-as-usual” (BAU) work. Managers already have a day job and reporting structure so management of the resourcing, risks, issues, and decision making that was present during the pre-close phase has largely evaporated.

There is a high-level of uncertainty on any project and M&A is no different. It is critical that the leadership team responsible for crafting the deal remain involved. The teams responsible for progress and benefits delivery can get easily mired in firefighting and in-fighting. Sometimes this can be blamed on “culture-clash” but regardless of the label it is up to leadership to quickly identify and make key decisions for the team.

How do I fix that?

A Project Manager will assure there is a process to engage, manage and communicate to stakeholders the changes to the timeline, unresolved issues, new risks, and most important, ensure timely decision making.

In the case of the new Raytheon Technologies, the advisors, accountants, lawyers, and bankers have put together an impressive transaction overview. You can check out the announcement package here. Hopefully, in coming days we will also see demonstration of a strong Project Manager working closely with the CEO to successfully deliver on the annualized benefits everyone is so excited about.

Stephen Wise

Integration Professionals

Dramatically Improve Traction

https://www.IntegrationProfessionals.com

 
Trudeau I'm Sorry

I'm Sorry

Trudeau I'm Sorry Apology

Bob Dylan demonstrates everything we need to know about a bad apology. He really is not sorry.

One of Us Must Know (Sooner or Later), Bob Dylan

"I didn't mean to treat you so bad. You don't have to take it so personal. I didn't mean to make you so sad. You just happened to be there, that's all."

The Canadian Prime Minister took a page from Dylan’s sorry songbook when an allegation arose that twenty years earlier, he had inappropriately touched a female reporter.

Trudeau advised us his behaviour was appropriate; it was her perception that was off -

Justin Trudeau

“I think the essence of this is people can experience interactions differently and part of the lesson we need to learn in this moment of collective awakening … people in many cases, women, experience interactions in professional contexts and other contexts differently than men.”

When a child does something wrong and we teach them to apologise to their brother or friend – they will go on to tell you the reason they apologised is they were told too. This is a missed opportunity for growth if we take this attitude into adulthood.

A good apology could show the other party you really care for their interests and help you both to move on.

Don’t be like a child.

or Trudeau.

and not like Dylan.

5 Elements for an Effective Apology:

    1. Be really clear you are sorry
    2. Say what you regret
    3. Explain how you should’ve behaved
    4. Demonstrate your empathy by acknowledging the full impact of your actions
    5. Ask for forgiveness

It can be intimidating to take responsibility with an effective apology. We learned in childhood to “Do the right thing”. I want everyone to remind themselves that doing the right thing is only the tip of the iceberg. An effective apology is extremely empowering for both parties.

Go ahead. Try it. Feel free to provide feedback or examples of really big apologies and whether the sorry was successful or not.

 

Stephen Wise
President
Integration Professionals

I dramatically improve traction in complex initiatives

 

American in Paris

Focus on Outcomes

Traction Tips

A weekly action idea to improve traction on your important initiatives by Stephen Wise.

  The new and wonderful musical, An American in Paris, is doing the rounds. It weaves multiple love stories with a Jazz and Ballet fusion leading to true love outcomes.  

Milo falls for Jerry, who's in love with Lise, who is engaged to Henri. Lise shares mutual affection with Henri but falls in love with Jerry. Jerry's friend Adam is also falling for Lise. Lise the ballerina, is oblivious she is the focal point of all the story lines. Despite the complications, true love wins out in the end. In the opening scenes of the musical Jerry sets his strategy to find and win Lise. However he gets lost, becomes indecisive, and is distracted by other interests. Has this ever happened to you in business? Getting lost in the details, uncertainty over the correct next step, or being distracted by new opportunities? Unfortunately, I see it every day. So, here is my guaranteed formula for success. 1. Focus on driving the outcomes 2. Accept Uncertainty 3. Agile Mindset

Focus on outcomes

Craft a hi-level plan. List the activities required to achieve the desired outcomes.

Accept Uncertainty

Accept uncertainty. Our ability to achieve goals proscribed in the plan can vary significantly.

Agile Mindset

Re-work your plan frequently.  Consider changes in the environment and your leanings along the way. Switch around your priorities. re-evaluate desired outcomes to reflect new realities.

Weekly Traction Action

Fuse the improvisation of Jazz with the perfection of Ballet to manage your corporate outcomes. Your weekly action: 1. Ensure all your desired outcomes have an accessible, hi-level, end to end plan. 2. Schedule regular times to evaluate whether you are on track and make course corrections to get back on track. I recommend or implement these actions all the time on client initiatives. Hopefully, it will work to improve outcomes for you too.

I love Email

Please send me an email and tell me about if you have success or trouble with this action. I’m always interested to see what can happen out in the wild.  

Stephen Wise

Integration Professionals

https://IntegrationProfessionals.com

Aruba

Race to Resilience

Traction Tips

A weekly action idea to improve traction on your important initiatives by Stephen Wise.

  Has it ever happened that your adequate plan takes a wrong turn and just keeps getting worse with every move you make? It is critical to under stand the concept of Resilience so that you have built up your resilience muscles in advance. 

Heading to the Airport

We left for Pearson airport right on schedule. It was about 5am, cold and clear. The trip would take about 20 minutes. The international flight was in 3 hours - I was heading for a long planned vacation in Aruba. My daughter was my driver and she would drop me off and return home with the car.

Change of Plan

On the way she mentioned she was worried the car was low on gas.

Waze

We took the nearest exit on the 401 where I knew a gas station would be nearby. While filling up I turned to the navigation app Waze for help to help get back to the airport. I wasn’t familiar with the area but Pearson is pretty big place; an airport should be hard to miss. Waze instantly computed a route and declared 31 minutes to destination. The detour was going to be a lot longer than anticipated, and I was suddenly annoyed with myself, “Bad decision to get unnecessary gas when the most important thing was to get to the airport on time”, I was thinking.

Wrong Turn

We turned left, left again and then another right and so on. Eventually Waze declared Mission Accomplished right on scheduled time. I peered out in the dark and nothing was familiar. There were no strings of lights from other arriving and departing cars, no familiar airport way-finding signage nothing. Waze had delivered us to the service entrance at the back of the airport. At that point, speed limits became speed suggestions, and I raced to re-trace our path, get back on the 401, and re-enter the proper Pearson departure queue. Once back at arrivals, I lept out of the car.

Arrivals

A very friendly Air Canada rep radioed the gate and ensured my bag was accepted after the cutoff. The sprint through security and customs was heart pounding but successful. Eventually, I took off for Aruba and it was everything people say about it.

Recovery

When you enter stressful events how do you react? Do you cope as best you can and then collapse? There is a better way. I learned from Richard Citrin, an expert in Resilience, that the right approach is to expect stressful situations to occur and prepare in advance to navigate through them and recover.

Resilience

When you are planning your next task, remember to build in enough time for reality. Also, prioritize so that you do the most important things first.   Thanks for reading. Subscribe to my newsletter for more traction tips at www.IntegrationProfessionals.com Stephen D Wise