Bancolombia

Talent, Culture &

Value Creation Management
in Mergers

Submitted by
Group 10
To what extent were Kotter's eight stages of the change process
followed during the merger process ?

• Three leading banking • Open and transparent

companies decided to communication with
merge. employees.
• Meeting of top • Experience based
management team of the exercises for behavioral
three companies. changes and skills
• Appointment of integration development.
project leader.

Establishing a sense of Forming a powerful Creating a vision Communicating the

urgency guiding coalition vision

• Merger of equals- Best of

• Bigger product portfolio each of three.
• Banking industries trends • Aim to create a new
towards consolidation. organization with a new
• Internationalization culture.
To what extent were Kotter's eight stages of the change
process followed during the merger process ?

• Repetition of cultural
transformation process.
• Facilitators included people from
all the three companies-some
• Division of employees into
veterans from the merger
four categories- key, critical, process, other new comers.
subject for transfer, those to • Internalization of corporate values
be dismissed. expressed in terms of expected
• Preserving employees
behaviour.
seniority. • Some of the corporate
• Uniformity in policies and
governance statement needed
benefits. change.

Planning for and creating Consolidating improvements

Empowering others to act on Institutionalizing new
short terms wins and producing still more
the vision approaches
change

• Customer focus.
• Intense training program.
• Formalized top
• Third party mediators to
management team to avoid
facilitate meeting to avoid
role and responsibility
biases.
ambiguity.
• Cultural transformation
• Clearly defined decision
process.
lines.
What was the business modeling each of the three companies
when considered separately ?

Old Niche strategy, focus on investment banking and high income

Bancolombia individuals. Aggressive strategy position which involved strengthening
the company for potential international competition.

Specialized in financial intermediation such as saving, operations and

Conavi finance. Widely known for superior and personalized customer service
delivery. Strong emphasis towards people and not results.

Corfinsura Industry leader in credit lines and financial services, treasury

management, investment banking and stock market operations.
3) To what degree did the merger facilitate the attainment of
management talent and new capabilites

The final product portfolio

led to intense training
New business model process
clearly communicated
continuously. Followed
The mission, vision and transparency in all the
best practices were processes
uniformly communicated
with Accenture’s
consultant and necessary
stakeholders
Cultural transformation
workshops were
organized. Employees
Employees divided into subjected to simulations
four categories (key, and experiences to create
critical, subject for transfer a synergized culture
and those to be
dismissed) and necessary
decisions were taken for
each.
4) Why do mergers and acquisitions succeed or fail?

Reasons for Success Reasons for Failure

• Consistent dialogue as to the • Lack of clarity and execution

reason behind merger and of the integration process
expected opportunities and
advantages of merger to • Cultural Integration Issues
mitigate unrest.
• Firm’s capacity inadequate to
• Culture fit and integration of absorb new processes,
partnering organization should structural changes
be in place.
• Overpayment leading to
• Employee retention strategy financial losses.

• The customers and external • Limited or no involvement of

stakeholders should be owners
communicated properly.

• Building trust between the

parties.
Thank you