Case Study – Merger of CGU and NU
The announcement of a merger typically sends shockwaves of anxiety rippling through an organization. Employees worry about losing their jobs. Managers struggle to maintain control in an environment where everything is shifting. Leaders agonize over the tough decisions that need to be made. And, people at every level may even lie awake at night wondering about their role in the new organization. This initial shock is often followed by a series of aftershocks.
Kotter & Cohen listed eight action steps to secure effective and successful large-scale change. Analysis on the steps taken by Patrick Snowball in effecting change as it relates to the case are as follows
1. Create a sense of urgency among relevant people- He believed that speed was essential in his goal to make CGNU profitable and the entire executive team were quick and nimble in the way they sorted out things. They wanted to avaoid paralysis and in so doing they quickly laid out the ground rule “this is the way we are doing it – this is in and this is out”.
2. Build a guiding team with creditability , skills , connect ions, reputations and formal authority to provide change leadership – The executive team was built comprising of employess valued for their experience and drive. They were chosen for there work efficiency but not necessarily with the ability to provide change leadeership
3. Create visions that are clear and uplifting, sets of strategies- A clear but short-term vision was related to executive management (i.e. short term goal of more profitability) this however was not communicated to the employees benefit and not explained to them
4. Communicate the vision and strategy so as to induce understanding and commitment- No not to all staff. Staff and directors were not privy to all the information and decisions that were taking place. Empower action and remove obstacles that stop people from acting on the vision (???)