We helped carry out an expansion strategy aimed at acquisitioning small firms
A large organization dealing in service, maintenance, and installation had an ambitious expansion strategy, aimed at acquisitioning small firms. These firms were successful locally rooted businesses, with their customer base nearby and in many cases founded and still managed by entrepreneurial craftsmen.
The management team wanted to merge all new firms into “One Firm” and had prepared financial targets, a new vision, new organization structure, basic principles, and corporate culture. However, after introducing a few new units to the well-planned integration process, the CEO received negative feedback. The plan was not received well by the incorporated firms.
Management decided they needed help with the merger and reached out to us. It took a while to convince them why their plan of “One Firm” was inappropriate and even counteractive in relation to what they wished for the organization.
We helped make clear the importance of transforming the power inherent in the local businesses into expansion and collaboration, instead of pushing them to accept a new and in many ways uncertain vision. We stressed the importance of making sure that the transformation would never hamper the units’ possibilities of continuing to do a good job or keep good relations with their customers.
We tasked all local operation managers with collecting data that shows how the businesses worked and what problems and challenges were present locally, to make possible a development process. In that process, we included employees and local management so that they could take part in defining new processes and work methods in order to strengthen the new forms of cooperation and realise the opportunities of the bigger firm.
As a benefit, they also felt that the new management took a deep interest in their business, cared for them as individual companies, and could assist them with things they themselves had not the competence to deal with.