Mergers
and acquisitions challenge the system. The system goes through a phase
where integrity of the system can be affected if meticulous planning is
not carried out. While having experienced and capable personnel to lead
this evolution is essential and desirable, we must not forget that "A
bad system will let down a good person every time". Therefore the
emphasis on looking carefully at the existing systems and then designing
the new system based on the "AS-IS" of the system led by a clear policy
from the Top Management is essential. Every merger brings a sense of
excitement within the organization. There is prospect of growth, not
only for the organization but also for all the personnel employed. It is
not surprising that not all mergers are successful. There have been
many a case of failed mergers, some having failed within a few months.
The value and benefits of a well implemented process based management
system cannot be stressed enough. This applies equally across all
industries.
A well-developed process based management system
ensures that all processes are established and functioning well and
will not be adversely affected as the merged organizations place the new
personnel in their roles of responsibility. The authorities and
responsibilities need to be well defined. The policy should be seen in
the light of the revised organization and should put in place clear
measurable objectives and goals. The system should help identify
non-conformities (NC). Most companies
fear NCs not realizing their importance. Although initially there
might seem to be an increase in reported NCs in a well integrated
and implemented system these NC’s will eventually lead to a culture of
Preventive Action opposed to Correction & Corrective Action post an
incident/accident.
Is
it merely enough to have a system in place though? At QMII we work with
our clients hands on to recognize the "As-IS" of the systems and
meticulously work to integrate them into a harmonized system so that the
integrity of the system is not lost as the merger progresses. The lack
of ‘buy-in’ by Top Management (TM)
to the new system creation or the TM saving pennies at the P stage of
the P-D-C-A (Plan-Do-Check-Act) cycle can have adverse consequences and
are the precursor for a dysfunctional system in the future resulting in
losses. The organization pays for the poor planning of the system.. It
is important to have
the Top Management lead the implementation of the new system and this
will then filter down the
ranks effectively.
For a maritime organization a
well-integrated Safety Management system complying with the ISM code ensures
that all aspects of logistics services, cruise services, vessel management,
ship maintenance, personnel training and commercial trading operations
performed throughout the company fleet work effectively to ensure the success
of the company.
This
might sometimes involve
developing a completely new system. However at QMII we strongly urge our
clients and alumni to ‘Appreciate their Management System’. That
respect for the existing system comes from avoiding templates (one fits
all!) and instead going to the “As-Is” of the existing systems before
integrating them. Then the gaps can be identified and effectively
filled. (See our methodology). This makes it easier for all employees to ‘buy-in’ to the integrated
system and leads to a successful merger!
