MMIS MERGER: AUTHENTIC
TRANSFORMATIONAL
LEADERSHIP
INTRODUCTION
Momentum
Metropolitan
BACKGROUND OF THE
MERGER
This merger was formed in 2010 by two South
Africans insurer
Provides the service in 12 nations
Its products include asset management,
employee benefits, life insurance, and
managed healthcare administration
MERGER
RATIONALE
COMPARISON OF MOMENTUM AND METROPOLITAN
UNBUNDLE OF SHARES
FIRSTRAND
METROPOLIT
AN
FIRSTRAND
REDISTRIBUTION OF
SHARES
Chart Title
METROPOLITAN; 41%
FIRSTRAND; 60%
FIRSTRAND
METROPOLITAN
MARKET COMPARSION PER AND POST MERGER
SEPARATION OF ENTITIES
MERGER RESERVATION
No effect on shareholder Price
Who was taking over whom?
Different culture
Required efficiencies
MERGER PROCESS
Wilhelm van Zyl Vision for Metropolitan
Partnership, combinations, and non-standard
affiliations
Van Zyl and Kruger approached each other
Merger talks were started
Business Model & Restructuring of Portfolios
APPOINTING THE MMI GROUP CEO
At executive level there was vagueness due to
change process
Trust, Integrity, Purity of Intent Consequences of
Different scenarios
There could only be one CEO
During initial phase, van Zyl and Kruger jointly
managed the change process
Eventually, Kruger became the CEO
TRANSFORMATIONAL
LEADERSHIP
implemented a structured communication
process
They made brief which provide answer to
potential question
Transparency of the brief
IMPACT OF VARIOUS INFLUENCERS DURING
SPECIFIC STAGES OF THE MERGER PROCESS
Leadership communication and the
management of organizational change
Leadership communication and the
management of organizational conflict
Leadership communication and the
management of corporate culture
ORGANIZATIONAL
CHANGE
a good organisational relationship including
each member
attaining such an environment is the
establishment of trust and honesty
while each organisational member should
promoteloyalty and reliability.
ORGANIZATIONAL
CONFLICT
Organizational members may perceivean
M&A activity as a conflict, it is imperative for
the success of the organization
CORPORATE CULTURE
moment of truth for management
it will be visible among members of the
organisation in the sense that they will
striveto meet organisational objectives and
display positive behavior if they succeed.
MMI HOLDING
a laser focus on messagesand a solid
commitment from leadership to
communicatewith employees from both premerger companies can help to assuage fears,
prevent negative chats around the water
cooler, and ensure employee loyalty during
the sometimesturbulentM&A process.
CHIEF INTEGRATION OFFICERS LEADERSHIP
ROLE
Danie Botes was appointed as the MMI chief integration
officer
A true merger was a different task as compare to take overs
Decision making power was a critical issue
A recruitment drive was launched to appoint staff to their
new positions
CHIEF INTEGRATION OFFICERS LEADERSHIP
ROLE
The main differences in culture existed in area of
management style
Values which formulated during the survey were
accountability, innovation, integrity, teamwork,
excellence and diversity
It was decided that staff will not reduce for two years
MERGER COMMUNICATION
Bi-Weekly Briefing Sessions
To kill the grapevine
Regular and timely communication built
confidence
Exco delivered its promise of providing
answers
Messages of both CEOs cross-checked and
expedited
Soft issues were often the hardest
Change process was managed well
Still not all stakeholders were on-boards
Many positions had to be rationalized
CHALLENGES AHEAD
Both cultures were jelling in
And most of the expectations turned out to be true
But there were still great challenges to cope with
Multi-racial workforce
Ailing Economy
Increasing Unemployment
Decreasing Disposable income
Kruger was faced with a task to break-out to the
employees about structural re-organization
KOTTERS CHANGE MODEL
& MMI
Create Urgency
Merger would add value by increasing market
share
Form a Powerful Coalition
Partnership and trust between Kruger & Van Zyl
Create a Vision for Change
Communicate the Vision
Remove Obstacles
Effective communication, steering committee, CIO
Create Short-Term Wins
Stakeholders on-boarding, seamless integration
Build on the Change
Analysis after each success, continuation of
momentum
Anchor the Changes in Corporate Culture
Structural re-organization
THATS ALL
FOLKS!
