As I work through the M&A materials I can’t help but consider if the same principles and approach can be used for Joint Ventures (JV) when we are making operator changes and no ownership changes. In joint ventures we will either have a sperate entity setup to operate the company or one of the majority owners will operate it. At this time we are looking to move one of our JV companies from being operated by a separate entity to being operated by our organization.
Like a M&A this is being planned to gain synergies between operating sites and functional teams. By sharing expertise across operating sites we are able to take advantages of each site’s best practices and R&D work. By consolidating our functional teams we will be able to reduce overhead. The success criteria for this work is clearly outlined so the end target is understood by the entire team working the integration.
As I reflect back on the Change Management topics Culture is one that is very important, the two organizations are very different culturally so understanding this difference and ensuring the executive teams are making conscious decisions on what we want to look like as a joint organization in the future is key to retaining the talent that we want to retain. Also, Day 1 will look different than prior to the merger and different from the months following Day 1 so ensuring we have a good transition plan and post Day 1 plan in place will enable achievement of the success criteria.
What are the group’s thoughts about using M&A principles with JVs?