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    Case#14 Analysis Group10

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    Mohammad Aamir
    - Three leading banking companies in Colombia decided to merge into a single organization to achieve synergies from a larger product portfolio and respond to consolidation trends in the banking industry. - Top management from the three companies met and appointed an integration project leader to oversee the merger process. The new organization aimed to create a single new culture bringing together the best of each bank. - Employees were divided into categories and policies were standardized as part of the integration process. Cultural transformation workshops helped socialize the new vision and values across the combined organization.

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    Case#14 Analysis Group10

    Uploaded by

    Mohammad Aamir
    199 views7 pages
    - Three leading banking companies in Colombia decided to merge into a single organization to achieve synergies from a larger product portfolio and respond to consolidation trends in the banking industry. - Top management from the three companies met and appointed an integration project leader to oversee the merger process. The new organization aimed to create a single new culture bringing together the best of each bank. - Employees were divided into categories and policies were standardized as part of the integration process. Cultural transformation workshops helped socialize the new vision and values across the combined organization.

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    Case 14 Analysis

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    Case#14_Analysis_Group10

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    - Three leading banking companies in Colombia decided to merge into a single organization to achieve synergies from a larger product portfolio and respond to consolidation trends in the banking industry. - Top management from the three companies met and appointed an integration project leader to oversee the merger process. The new organization aimed to create a single new culture bringing together the best of each bank. - Employees were divided into categories and policies were standardized as part of the integration process. Cultural transformation workshops helped socialize the new vision and values across the combined organization.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    199 views7 pages

    Case#14 Analysis Group10

    Uploaded by

    Mohammad Aamir
    - Three leading banking companies in Colombia decided to merge into a single organization to achieve synergies from a larger product portfolio and respond to consolidation trends in the banking industry. - Top management from the three companies met and appointed an integration project leader to oversee the merger process. The new organization aimed to create a single new culture bringing together the best of each bank. - Employees were divided into categories and policies were standardized as part of the integration process. Cultural transformation workshops helped socialize the new vision and values across the combined organization.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Bancolombia

    Talent, Culture &


    Value Creation Management
    in Mergers

    Submitted by
    Group 10
    To what extent were Kotter's eight stages of the change process
    followed during the merger process ?

    • Three leading banking • Open and transparent


    companies decided to communication with
    merge. employees.
    • Meeting of top • Experience based
    management team of the exercises for behavioral
    three companies. changes and skills
    • Appointment of integration development.
    project leader.

    Establishing a sense of Forming a powerful Creating a vision Communicating the


    urgency guiding coalition vision

    • Merger of equals- Best of


    • Bigger product portfolio each of three.
    • Banking industries trends • Aim to create a new
    towards consolidation. organization with a new
    • Internationalization culture.
    To what extent were Kotter's eight stages of the change
    process followed during the merger process ?

    • Repetition of cultural
    transformation process.
    • Facilitators included people from
    all the three companies-some
    • Division of employees into
    veterans from the merger
    four categories- key, critical, process, other new comers.
    subject for transfer, those to • Internalization of corporate values
    be dismissed. expressed in terms of expected
    • Preserving employees
    behaviour.
    seniority. • Some of the corporate
    • Uniformity in policies and
    governance statement needed
    benefits. change.

    Planning for and creating Consolidating improvements


    Empowering others to act on Institutionalizing new
    short terms wins and producing still more
    the vision approaches
    change

    • Customer focus.
    • Intense training program.
    • Formalized top
    • Third party mediators to
    management team to avoid
    facilitate meeting to avoid
    role and responsibility
    biases.
    ambiguity.
    • Cultural transformation
    • Clearly defined decision
    process.
    lines.
    What was the business modeling each of the three companies
    when considered separately ?

    Old Niche strategy, focus on investment banking and high income


    Bancolombia individuals. Aggressive strategy position which involved strengthening
    the company for potential international competition.

    Specialized in financial intermediation such as saving, operations and


    Conavi finance. Widely known for superior and personalized customer service
    delivery. Strong emphasis towards people and not results.

    Corfinsura Industry leader in credit lines and financial services, treasury


    management, investment banking and stock market operations.
    3) To what degree did the merger facilitate the attainment of
    management talent and new capabilites

    The final product portfolio


    led to intense training
    New business model process
    clearly communicated
    continuously. Followed
    The mission, vision and transparency in all the
    best practices were processes
    uniformly communicated
    with Accenture’s
    consultant and necessary
    stakeholders
    Cultural transformation
    workshops were
    organized. Employees
    Employees divided into subjected to simulations
    four categories (key, and experiences to create
    critical, subject for transfer a synergized culture
    and those to be
    dismissed) and necessary
    decisions were taken for
    each.
    4) Why do mergers and acquisitions succeed or fail?

    Reasons for Success Reasons for Failure

    • Consistent dialogue as to the • Lack of clarity and execution


    reason behind merger and of the integration process
    expected opportunities and
    advantages of merger to • Cultural Integration Issues
    mitigate unrest.
    • Firm’s capacity inadequate to
    • Culture fit and integration of absorb new processes,
    partnering organization should structural changes
    be in place.
    • Overpayment leading to
    • Employee retention strategy financial losses.

    • The customers and external • Limited or no involvement of


    stakeholders should be owners
    communicated properly.

    • Building trust between the


    parties.
    Thank you

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