Photo by Annie Spratt
What is Change Management?
Change management is the preparation around the cultural, organizational, and financial transition that two companies may go through during and after a merger or acquisition. This transition or change management period can take months or even years, depending on the size and scope of the companies. The changes that a merger or acquisition bring can be a shock to employees, executives, and board members alike. So good companies will usually hire integration management firms to make this transition as smooth and easy as possible.
Why is Change Management Important?
The Goal of Change Management, according to integration management firm, PROSCI, is to “improve an organization by altering how work is done.” The importance of change management is crucial to the success of the merger or acquisition. Afterall, 70% of mergers and acquisitions fail. (Read this article on top merger fails, and how to avoid them).
“The greatest importance of change management is that it provides conceptual scaffolding for people, the process, and the organisation implementing change.” – Change Management Coach
A change management plan or post merger integration plan not only serves as a blueprint of activities that is needed to cultivate the workforce, it is an essential time where the organization(s) can assess what is lacking, what needs to be prioritized, and what resources are needed in order to create the program.
See more: Benefits of Change Management
Where to Go for Change Management Help
Although it may feel natural for the executive teams to want to manage the post M&A change of their respective companies, it’s a better idea to hire a third party change management firm to avoid conflict and produce the best results.
Here are the top 5 change management firms, according to an in-depth 2020 Review by Clutch:
“Pros doing pro work: We help organizations make, adapt, and grow their digital capabilities.”
A global technology consulting firm based in San Diego, CA. SmallWorld enables small and large companies to stay relevant through digital transformation and offers a quality experience from business strategy consulting to implementing advanced solutions.
“Design nerds. Not design snobs. We’ll help you come up with ideas you didn’t know you could have.”
Modicum Agency is a New York-based consulting and change management firm whose expertise is to “transform concepts to consumable content” by incorporating the relevant creativity and technology based on company needs.
3. Council Fire
“Define Purpose; Redefine Profit”
Sustainability is a priority for Council Fire, a consulting firm from Washington, DC. They help their clients attain “sustainable success by discovering, embracing and leveraging economic, social and environmental opportunities that will yield decades of growth and positive operational performance”
4. 18 Coffees
“A community-driven strategy & innovation firm”
18 Coffees, a strategy and innovation consulting firm located in Chicago, IL focusing on a community partnership program – continuously developing and expanding their talents in technology, marketing and innovation – in order to provide better quality services for their clients.
“Opening People to Greater Possibilities”
Amarna Group is located in Los Angeles, CA providing services such as performance health check, profiling and several workshops designed to focus on the organization’s growth by effectively directing the workforce individually and as a team.
A takeaway from this does not mean that the third party that will implement the change management is to take over a project or company management. It is more so that, “leveraging professionals who have insight into other companies’ mistakes and best practices will go a long way in helping you be successful. Additionally, in the case of software implementations, the top technology vendors have resources in place to ensure your success” – Claudia Faerber (Forbes)