©2014 This Is Ltd

HR & HIRING MANAGERS’ FORUM

Organisational Change:

Mergers & Acquisitions

Ms Terri Morrissey

Dr Richard Plenty

Directors of This Is

www.thisis.eu

Gibson Hotel, Dublin

Thursday 20th February 2014

©2014 This Is Ltd

Our Experience in Airports www.thisis.eu

Thought Leaders

Many articles and regular column in Airport World

Articulating business psychology perspective

Consultants

Transforming DAA, 2005-2012

Supporting ACI Europe HR Forum

Developers and Educators

Design & deliver ACI World HR Programme

ACI World Succession Planning Programme

Talks at Conferences and Events

Innovators

ACI Europe Airport Leadership and Change Summit

ACI Europe AirPeople™ Employee Survey

High quality services to help airport organisations and leaders in times of change

Organisation development, leadership development, executive coaching

Creating the High Performance Airport

©2014 This Is Ltd

Our Experience in Airports www.thisis.eu

Thought Leaders

Many articles and regular column in Airport World

Articulating business psychology perspective

Consultants

Transforming DAA, 2005-2012

Supporting ACI Europe HR Forum

Developers and Educators

Design & deliver ACI World HR Programme

ACI World Succession Planning Programme

Talks at Conferences and Events

Innovators

ACI Europe Airport Leadership and Change Summit

ACI Europe AirPeople™ Employee Survey

High quality services to help airport organisations and leaders in times of change

Organisation development, leadership development, executive coaching

Creating the High Performance Airport

©2014 This Is Ltd

Our Approach to Change

Organisations must match their change strategy to their business requirements ...

©2014 This Is Ltd

M & A activity picking up in Aircraft leasing

Many people will be experiencing the impact for themselves

Many HR people have limited experience in supporting this area

May involve complex organisational changes to culture and the way

people work together

Is cultural change something that can be facilitated?

Why we are focusing on M &A’s

©2014 This Is Ltd

‘The culture will take care of itself. People ultimately learn to work

together, They may not like it. They may complain a lot, But you know

what. In five years time they will be quite surprised at how they have

learned to get along.’

Sir John Reid, CEO Citicorp, re merger between Citicorp and Traveller Group, June 1999

Does culture matter in M&A’s?

©2014 This Is Ltd

Mergers involve combining groups of people possessing established

norms beliefs and values ...

How cultures are integrated can make or break a deal

30% of failed integrations are due to cultural issues

Cultural issues need to be owned, measurable and tangible, focused on

business value-added

The Reality…

©2014 This Is Ltd

Our Research - key success factors in mergers ...

Strategy

Leadership and management

Planning

Dedicated teams

Achieving employee buy-in

Staff fit

©2014 This Is Ltd

Business strategy shapes culture ...

BUSINESS STRATEGY

Business requirements

Relative sizes

Strengths of both parties

ORGANISATION

Desired organisation type

Decision making process

PEOPLE

Build employee brand

Gain engagement

A

B

A+

C

+

AB

A with B

‘Autonomous’

‘Dominant’

‘Merged’

‘Transformed’

©2014 This Is Ltd

The four C’s of Engagement

Co-ordination : let people see where they fit in

Cooperation: help people voice thoughts and concerns

Collaboration: create opportunities to explore differences and similarities

Commitment: ensure people want to contribute to success

Staff engagement is critical …

©2014 This Is Ltd

Our thinking: a 5 step approach to Mergers ...

Develop climate of strategic thinking & cooperation

Systematically evaluate people issues without

undermining collaborative ethos

Develop the strategic context for people management

Engage people in the new enterprise

Learning and embedding of the new culture

Pre Deal Evaluation

Due Diligence

Implementation

Planning

Implementation

Post Implementation

Merger Stage Organisation and People Issues

©2014 This Is Ltd

The HR role during the transition is to lead decision processes , execute

the transaction and prepare the company for integration

Deloitte report ‘Leading through transition’

Partner with Corporate Development team – get in from the start

Create HR M&A team

Find high potential team members and develop them

Standardise the process – develop tools

The role of HR Strategic Partner

©2014 This Is Ltd

What are the key challenges facing HR in M&A’s?

How can HR influence the outcome to ensure M &A success?

Exercise

©2014 This Is Ltd

‘We are talking about putting together two cultures that are quite different,

quite distinct. I am trying hard to understand how to make this work. I will

tell you that it is not simple and it is not easy and it is not clear to me that

it will necessarily be successful. Just as the human body rejects an organ

that it needs, business systems can sometime reject behaviours that are

required for a system’s success.’

Sir John Reid, CEO Citicorp, re merger between Citicorp and Traveller Group, March 2000

Does culture matter in M&A’s?

©2014 This Is Ltd

Contact us at Richard@thisis.eu or Terri@thisis.eu

Culture Change – Organisation and Leadership Development

Team Building – High Performance – Executive Coaching

Tel : + 353 1 617 7810

Thank you

©2014 This Is Ltd

Richard Plenty

Richard is Managing Director of This Is. He is an experienced international organisation development consultant, human resources

leader and business psychologist. He works with leaders and top teams on issues associated with leadership, strategic change,

organisation culture, talent management and organisation effectiveness. His style is strategic, engaging and business focused.

His experience includes 20 years coordinating and facilitating strategic change in Europe, Asia and North America with Shell

International as both an Organisation Development Manager and HR Leader, including substantial periods based outside the UK.

During his Shell career, he worked across all business sectors with clients up to and including the top level of the organisation. He was

a key player in international projects such as the development of a global chemicals business (involving the 'merger' of many

previously independent national organisations in North America, Europe and Asia), the introduction of common global staff

resourcing systems and the pioneering Shell People Survey.

Richard's more recent work has included providing coaching and mentoring support to business leaders and fellow professionals, as

well as leading and working on consultancy assignments in a variety of sectors. In the Airport sector, Richard has been involved in:

•Long term integrated and strategic change programme (from 2005 - 2012) to transform the effectiveness of Dublin Airport Authority

(DAA), working with the top team

•Support for Air Council International (ACI) on matters relating to leadership, change and strategic HR across the sector as a

speaker, coach, consultant, trainer and event organiser

•Composing a regular column for Airport World on organisation, people and leadership

Richard holds postgraduate qualifications (MSc and a PhD) in psychology and human factors and is a Chartered Psychologist, an

Associate Fellow of the British Psychological Society, a Principal Member of the Association for Business Psychology and a Fellow of

the Institute of Ergonomics and Human Factors. He also holds a first class honours degree in Physics from London University and a

first class honours Advanced Postgraduate Diploma in Business and Executive Coaching from the Smurfit Graduate Business School,

University College Dublin.

©2014 This Is Ltd

Terri Morrissey is a founding Director of This Is. Her core competency is in delivering behaviour change at a deep level with people at all

levels in organisations. Her working style combines innovative and challenging approaches to mindset and behavioural change with

down to earth practical examples to create high performing cultures, teams and individuals.

Her career spans all major sectors, public, private, state and voluntary. Her client base has included Dublin Airport Authority, British

Airways Engineering, Kimberly-Clark, Unilever, SIPTU, Bank of Ireland, Irish National Government Fora in Health, Local Government,

and Education, Diageo, Cap Gemini Ernst & Young, Fujitsu Consulting and Conduit plc. More Recently she worked on a major change

programme with the Dublin Airport Authority working closely with the Chief Executive Declan Collier and the top 100 leaders.

In This Is, Terri takes responsibility for building business relationships, expanding the client base, and working with leaders and top

teams in strategy building and in translating current best practice models of performance into real cultural and behavioural change.

Since 2005, Terri has become increasingly well known in the airport sector as an expert on leadership and strategic change. She founded

the annual Airport Leadership and Change Management Forum in 2009, and co-organised the 2011 event in Dublin, the 2012 Forum in

London and the 2013 event in Bologna. She is a regular speaker ar airport events and is the co-author of numerous articles, conference

papers and publications relating to airport leadership including Airport World, where she will have a regular column in 2014 with her

colleague Richard Plenty.

Terri's qualifications include an honours degree in Psychology from UCD and an MBA from Fordham University, New York in 1992

where she was a gold medallist and won the Dean's Award for Excellence. She also completed an Advanced Management Diploma in

Business & Executive Coaching at University College Dublin, Michael Smurfit Graduate Business School (first class honours).

In 2012 she was recognised by Irish Tatler magazine as one of the Irish 'Business Women of the Year'.

Terri Morrissey