Company Merger Case
The complex and dynamic nature of the current business landscape forces companies to merge to cut costs and improve efficiency. Margaret Cantor has been appointed as the new Regional Director of Nursing Efficiency for the merger between Doctor Plus and MediCharge. Doctors Plus was renowned for providing quality healthcare services. However, the facility faced severe financial issues, including cost overruns and poor planning, which placed the company in debt. The debt allowed MediCharge to acquire Doctors Plus and restructure the company’s financial problems.
Although the merger possesses potential advantages, it has certain risks, especially in leadership. Margaret must embrace and adopt specific skills and behaviors to lead managers from the two companies more effectively. Mergers present both opportunities and challenges, and leaders should help their teams navigate the change.
Leadership Behaviors
Effective leadership is a vital aspect of any successful company, especially during a merger. In essence, leadership entails the ability to guide and inspire others toward achieving a common goal. Margaret must leverage her strengths, values, and experiences to direct and influence others when interacting with her new direct reports. Drawing on this, there are specific behaviors that Margaret should adopt to make the interaction more effective and successful.
Among the key behaviors for Margaret when she begins to collaborate with the new direct reports is active listening. Kalogiannidis (2020) asserted that effective leaders value the importance of listening and understanding different perspectives. Active listening typically encompasses asking for clarification, demonstrating understanding and empathy, and paying attention to communication cues. Through active listening, Margaret can build credibility with the new direct reports and be well-equipped to manage potential issues that might arise. Equally important is effective communication, which would help Margaret confidently share ideas and build relationships, in turn inspiring others to action.
Another crucial behavior that Margaret should embrace is the ability to be adaptable. The merger will demand a change of existing systems, operations, and processes. Adaptability to changing environments, circumstances, and situations is vital for leaders as they interact with others. Adaptable leaders work more effectively and can navigate complex situations to find creative solutions (Caligiuri et al., 2020). Therefore, adaptability can help Margaret recognize the significance of continuous growth and seeking out new challenges.
Additionally, Margaret should demonstrate a commitment to ethical business behavior. Subsequently, this would build trust and credibility with the new direct reports and, more likely, help achieve the merger’s goals. Margaret would need to act with transparency, integrity, and accountability, with a commitment to building a culture of trust. However, the merger may create new opportunities and challenges, which would require more focus and strategic thinking. Therefore, Marget should recognize that her behaviors may need to change over time to lead a more complex organization.
Leading by Influence
Leaders often create and maintain a workplace culture that embraces efficiency and productivity. Carraro (2019) contended that efficient procedures and systems enable companies to achieve their objectives more effectively. However, getting others to adopt these systems can prove daunting, especially when introducing new procedures. Margaret recognized that some of the managers were resistant to her ideas and blamed the local nursing directors for their minimal effort toward change.
Following this, Margaret can use various influence behaviors to convince the manager to adopt efficiency-related procedures. For one, coercive power can be effective in ensuring that involved parties comply with proposed and implemented changes (Carraro, 2019). Margaret can use coercion to bring everyone on board with the new structure and blend MediCharge’s management structure with Doctor Plus’s operations.
Furthermore, managing individuals remotely can be challenging, especially when attempting to create bottom-line results in a limited time. Given this, a leader can use informational power by taking advantage of their access to specific information to influence other managers (Budur, 2020). For example, Margaret can use informational power to have every manager adopt efficient procedures by presenting them with substantive data demonstrating the benefits for both organizations.
Margaret’s role includes overseeing nursing operations in Colorado, Arizona, Wyoming, and New Mexico. Nursing managers at Doctor Plus facilities were reluctant to change the entity’s name for branding purposes. Margaret should gather relevant data showing the significance of creating a new brand name that reflects the vision and mission of both companies.
Nonetheless, certain influential behaviors may be more effective than others. In a situation where there is a need for compliance, coercion would be most effective. However, if Margaret has access to valuable data compared to the other nursing managers, informational power may be more desirable. Thus, the effectiveness of the type of influence behaviors largely depends on the circumstances.
Post-Merger Culture
Mergers significantly impact the companies and stakeholders involved. Among the challenges that companies face during mergers and acquisitions is cultural differences. Leaders influence the formation of a cohesive and strong workplace culture during mergers. However, Bari et al. (2019) demonstrated that cultural issues might arise and can impact management and leadership.
Doctors Plus served as the largest multi-specialty care facility with numerous regional clinics in the northwest part of the United States. The health organization’s prominence in its area was due to its high-quality healthcare services. Conversely, MediCharge’s strategy prioritized cost-cutting. In this case, a balanced approach is required to create an inclusive culture that reflects the values and mission of the new organization.
Furthermore, the nursing managers may stress the culture of the acquiring company over the acquired. The acquiring organization, MediCharge, is smaller but more successful and financially sound, and thus, it has a culture that can likely lead to success. However, this could create resistance among other stakeholders of the acquired company who feel that their work culture is devalued.
In contrast, some managers may take a balanced approach by proposing a new culture that incorporates successful elements of both health facilities. Despite its effectiveness, this approach may be challenging to implement since it demands careful consideration, collaboration, and the willingness to compromise certain values (Bari et al., 2019; Sarala et al., 2019). Nonetheless, it can potentially result in a more inclusive culture that reflects the strengths of MediCharge and Doctor Plus. Margaret should navigate the complexities of the merger and work to foster a sense of constructive dialogue to agree on the best organizational culture.
Leadership in Mergers
Merging companies can be a complex and challenging process, especially for leaders. Margaret must plan, communicate, and manage the whole process successfully. The mergers between Doctor Plus and MediCharge can have a significant impact on Margaret’s ability to lead due to conflicting interests. The nursing managers will be forced to manage change during the merger.
MediCharge and Doctor Plus have different workplace cultures, with one oriented toward cost-cutting and the other focused on quality over quantity. Therefore, the merger will involve significant structural and cultural change that will likely disorient involved stakeholders (Bari et al., 2019; Sarala et al., 2019). Margaret must effectively navigate these changes to create a sense of direction and stability for both teams. Given the complexity of the merger, Margaret should communicate effectively with the managers, address their concerns, and help them adjust to the new reality to gain and maintain their trust.
Furthermore, there is uncertainty about the merger’s impact, especially for Doctor Plus. According to Sha et al. (2020), mergers create uncertainty because involved individuals are concerned about job security, cultural change, and the company’s future direction. Following the merger, top management decided to restructure MediCharge and Doctor Plus for improved efficiency, customer service, and cost containment.
As such, the management team created a matrix structure that would be used in the future. Managers at Doctors Plus would more likely continue to report to their previous functional directors. However, this might result in operational clashes between the two facilities and the loss of key stakeholders, particularly from MediCharge. Margaret must provide a sense of stability during the merger while being transparent about the changes that will likely take place.
However, a potential advantage that Margaret would gain during the merger is shaping the direction of the new organization as the new Regional Director of Nursing Efficiency. With her skills and expertise, Margaret can create a sense of shared identity and purpose among managers from Doctor Plus and MediCharge.
Trust in Leadership
Building trust is a critical leadership strategy that shapes the relationships between leaders and their teams. For one, trust guides cooperation and open communication, in turn, leading to improved performance, engagement, and increased productivity. Breevaart and Zacher (2019) implied that leaders must factor in time, effort, and consistency when establishing trust.Following this, Margaret should demonstrate integrity when working with her new direct reports. Typically, this would require Margaret to be honest and consistent in her leadership approach.
In addition, Margaret should communicate effectively to build trust with other managers remotely, seemingly with minimal power. Leaders with good communication skills are more likely to build trust with their team by providing timely feedback and responding to raised concerns. Moreover, Margaret can build and maintain trust with her team over time by demonstrating competence. Margaret’s previous job entailed overseeing nursing operations in four states. Her expertise and competence, including emotional intelligence and technical skills, can inspire trust in other managers and lead to improved outcomes for Doctor Plus and MediCharge.
The servant leadership theory posits that leaders who prioritize others’ needs demonstrate competence, which can help build trust over time (Saleem et al., 2020). Nonetheless, Margaret should be consistent in her leadership approach for enhanced commitment. Creating a sense of shared vision can help Margaret align the interests of the two companies.
Conclusion
Mergers are often complex processes that demand effective leadership for desired outcomes. Leaders play a pivotal role in ensuring the success of the merger and that it delivers its intended goal. The merger between Doctor Plus and MediCharge aims at improved efficiency, better cost management, and quality healthcare services. Therefore, Margaret should guide the managers from both companies in setting achievable goals and reaching a consensus on the best organizational culture to adopt.
Subsequently, this will help counter potential issues that might arise during the merger. In addition, the nursing managers must be adept throughout the merger. Leaders should effectively communicate the rationale of the change and provide reassurance that the merger will help move in the right direction. Overall, today’s evolving business landscape demands an effective leadership approach to create more competitive companies.
References
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