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Corporate Development is an under-represented area in the management consulting field. It refers to a wide range of strategies designed to meet organisational objectives, and may include mergers and acquisitions, real and intellectual asset management, market entries, new product directions, strategic partnerships and human capital expansions. Corporate development is distinguished by the fact that it grapples with ideas that achieve revolutionary development, while the ‘business as usual’ activities ensure the evolutionary development that sustains an organisation while it invests in thinking outside the box. RERIGHT understands the challenge of corporate development, and has experience in partnering with corporations and observing the highest standards of confidentiality as it provides strategic guidance on matters of corporate development strategy and execution – charting a path for organic and non-organic growth towards shareholder value or corporate wealth creation. It is our forte.
The process of consulting on corporate development includes careful micro and macro-level analysis of an organisation, a complete review of its organs of operation, its markets, its strategies and performance.
Many corporate development executives might imagine their work is complete on the day a contract is signed. RERIGHT has had enough experience to know that the key to merger value is the successful management of post-merger integration. With one 1999 study suggesting 83% of mergers were unsuccessful in producing shareholder value or any business benefit (Coleman, 2006), it is a major concern if a business is encountering strong internal resistance to post merger integration efforts aimed at capitalising on the imagined value of the union.
Post-merger integration is an exercise in 'change management'. The management of change is perhaps the biggest challenge facing today’s and tomorrow’s executive cadre. Change not only faces every sort of organisation, but has reached new heights in this globalized and technological era. Organisational complexity, the adverse pressures of competition and ever-emerging technologies make the commercial organisation especially challenged. Change encountered might resemble what Huber and Glick (1993) refer to as ‘discontinuous change’, a force of ‘cataclysmic upheaval… so sudden and extensive that they overwhelm organisation’s adaptive capacities and transcend top managers’ understanding’. This disorientation can result in confusion about the organisational context, the strategy for individual businesses, and the strategy for the firm as a whole.
It is well charted that merger acquisition can cause reduced psychological attachment, a loss of identification with the business, and a drop in motivation or commitment from individuals within the organisation (Schweiger & Walsh, 1990). Given that change is relying on the attachment, identification, motivation and commitment of the staff to realise synergies and deliver a successful merger, post-merger integration strategies must start to reflect this priority. An employee’s identification with the firm before the merger needs to be carefully protected and carried forward into the new entity. Kavanagh and Ashkanasy (2006) succeed in highlighting that in most mergers change is even foist upon leadership themselves, but ultimately the outcome rests in the methods employed to manage the merger process through a cultural continuum from highly controlled through to free. There's every reason to engage the support of experienced professionals - and RERIGHT is ready to help.
Our ideas on corporate development don't end here - for more information email:
RERIGHT is committed to continually developing its people. We guide our consultants to meet their goals and develop into experienced directors in their own right. Hierarchies don’t help clients – well developed consultants do. for a confidential discussion.
RERIGHT was estabslihed in 2003 to fill a gap in Australian management consulting by providing truly global strategies. To develop your global corporation the right way, contact RERIGHT.