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Article
Publication date: 17 January 2022

Timothy Galpin

225

Abstract

Details

Strategy & Leadership, vol. 50 no. 1
Type: Research Article
ISSN: 1087-8572

Article
Publication date: 6 September 2018

Timothy Galpin

Mergers and acquisitions (M&As) have become the preferred growth strategy for many executives. However, simply “doing deals” is not enough to create a competitive…

Abstract

Purpose

Mergers and acquisitions (M&As) have become the preferred growth strategy for many executives. However, simply “doing deals” is not enough to create a competitive advantage for their companies. Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Using Woodward, Inc. as a case example, this article shows how using an actionable, end-to-end process model, and embedding integrated capabilities within the organization, across the entire process, managers can make M&A a core competence to provide a valuable, rare, and inimitable advantage for their firms.

Design/methodology/approach

A mixed-methods approach, combining action research with a narrative synthesis of empirical and practice literature was used to develop a comprehensive M&A process model - the Deal Flow Model - consisting of ten stages across three phases. The resource-based view, core competencies, and the VRIO framework provide a theoretical foundation for the model. An application of the Deal Flow Model using Woodward Inc. as a case example is also presented.

Findings

Only focusing on M&A as a financial transaction is too narrow of an approach, which is easily duplicated across firms. Instead, using an actionable, end-to-end process model, and embedding integrated capabilities within the organization across the entire M&A process provides a valuable, rare, and inimitable advantage for firms.

Research limitations/implications

Researchers will find the Deal Flow Model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.

Practical implications

A practice-oriented Deal Flow Model, providing a cross-disciplinary, end-to-end view of the M&A process is presented. The model is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization.

Originality/value

The Deal Flow Model is unique as it is designed to be actionable by managers, who can apply the process to build the M&A competence of their organization. Likewise, researchers will find the model useful as a structure to examine the M&A process as a whole or to frame single-stage, single-discipline research in the broader context of the overall M&A process.

Details

Strategy & Leadership, vol. 46 no. 5
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 21 November 2018

Timothy J. Galpin

A seven-step Strategy Execution Model provides a tested guide to agile implementation.

1275

Abstract

Purpose

A seven-step Strategy Execution Model provides a tested guide to agile implementation.

Design/methodology/approach

Pragmatic actions, key deliverables and a case example for each of the seven steps in the model are presented.

Findings

Firms that focus more on strategic planning than implementation are often plagued with execution issues. Whereas, organizations that are able to execute their strategies as a well managed, integrated process have a much better chance of realizing the full potential of their plans.

Practical implications

Supporting the experience of numerous management teams, research indicates that poor execution often squanders the value companies anticipate from innovative, advantageous strategic initiatives. To minimize the likelihood of mismanagement, companies need a repeatable process that provides an integrated and actionable approach to effective strategy execution.

Originality/value

Senior executives and middle managers need a structured, coordinated system for managing strategy implementation. The author’s seven-step method has been tested in practice and refined. It emphasizes communication and agile adaptability.

Details

Strategy & Leadership, vol. 46 no. 6
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 29 March 2022

John Gilligan and Timothy Galpin

Although M&A transactions often destroy shareholder value for corporate strategic buyers, PE firms, whose business model is predicated upon repeating M&A, have a better…

Abstract

Purpose

Although M&A transactions often destroy shareholder value for corporate strategic buyers, PE firms, whose business model is predicated upon repeating M&A, have a better record of creating value for their investors.

Design/methodology/approach

The critical aspects that comprise the PE playbook are organized around the three main deal phases Pre-deal, Deal and Post-deal.

Findings

Research has found that 60 percent of surveyed strategic buyer executives indicated their companies do not have a comprehensive end-to-end M&A approach using a playbook.

Practical/implications

Ample evidence exists demonstrating that corporate strategic buyers experience significant difficulty in creating value from their transactions.

Originality/value

Though many view PE firms as value-destroyers, various peer-reviewed studies have found that PE-backed firms have a surprisingly favorable record.

Details

Strategy & Leadership, vol. 50 no. 3
Type: Research Article
ISSN: 1087-8572

Article
Publication date: 4 November 2020

Timothy Galpin

The purpose of this paper is to determine how and to what extent firms are using “environmental choice architecture” to “nudge” innovation across the organization. The…

Abstract

Purpose

The purpose of this paper is to determine how and to what extent firms are using “environmental choice architecture” to “nudge” innovation across the organization. The Cultural Alignment Model was designed based on the concept that individual and collective workforce behaviors are formed by an organization’s environment. Although existing since the 1950s, behavioral theory has seen a recent resurgence of popularity in shaping culture. Described in the book Nudge, compelling research demonstrates that individual and collective behavior can be influenced through what is termed “environmental choice architecture.” The Oxford Innovation Insights Project was established to test the Cultural Alignment Model, by answering the question – How and to what extent are firms using “environmental choice architecture” to “nudge” innovation across the organization?

Design/methodology/approach

Semi-structured interviews were conducted with 60 “C-Suite” executives, representing 15 different industries. Each executive was asked to respond to the same four items: to what extent do you agree or disagree with the statement – innovation is a strategic priority for our firm; on a scale of 1 (low innovation) to 10 (high innovation) please rate your firm’s organization-wide level of innovation; Which of the following processes does your firm use to encourage innovation across the organization? And for the processes that your firm uses, please provide examples of how each is designed to encourage innovation behaviors across your workforce.

Findings

Eighty-six percent of respondents identified innovation is a strategic priority for their firm, while just 8% of respondents rated their companies as having a “high” level of firm-wide innovation. The environmental choice architecture components most frequently used by firms to encourage innovation behaviors across the workforce are identified. A strong positive relationship was found between “high innovation” firms and the number of environmental choice architecture components they use to encourage innovation. Firms having a low level of innovation underperformed market peers, while firms rated as having a high level of firm-wide innovation outperformed the market benchmark.

Research limitations/implications

Repeat the current study to include more respondents and industries; rather than relying on self-ratings, determine a firm’s innovation rating through an external assessment, such as industry expert ratings of firms’ innovativeness; beyond frequency of utilization, assess the strength of innovation “nudge” each cultural lever provides; determine if a relationship exists between the market and financial performance of firms and the number of “cultural levers” they use to nudge innovation across the workforce; and compare the level of innovation between each industry by expanding the respondent pool to include more representatives from each industry.

Practical implications

Company culture is identified as one of the top obstacles for a firm’s innovation performance in a global survey of 1,500 executives. Moreover, the authors of the McKinsey Global Innovation Survey state, “The best companies [in the study] find ways to embed innovation into the fibers of their culture, from the core to the periphery”, but tellingly the authors do not identify how to go about creating that embeddedness. The Cultural Alignment Model presented provides management a pragmatic approach to embed innovation across their firm’s culture using elements of the organization’s choice architecture.

Originality/value

Behavioral theory has seen a recent resurgence of popularity in shaping culture. The Oxford Innovation Insights Project tests the Cultural Alignment Model, by answering the question – How and to what extent are firms using “environmental choice architecture” to “nudge” innovation across the organization?

Details

Journal of Business Strategy, vol. 43 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 15 March 2021

Timothy J. Galpin

As the Covid-19 crisis recedes, struggling firms will be bought by bargain hunters and suffering industries will consolidate, giving rise to another wave of M&A…

Abstract

Purpose

As the Covid-19 crisis recedes, struggling firms will be bought by bargain hunters and suffering industries will consolidate, giving rise to another wave of M&A transactions. But buyers beware! There is ample evidence that M&A creates significant post-deal performance issues for acquiring “buy-side” firms.

Design/methodology/approach

New research shows that effectively managing three processes of acquisitions can have an outsized beneficial impact on M&A success.

Findings

Recent research has identified three mission-critical tasks that stand out as being vital to creating M&A success: Process 1: Accurately valuing targets. Process 2: Proficiently managing post-merger integration. Process 3: Skillfully addressing the “big-three human factors” of M&A.

Practical implications

Robust talent retention and re-recruitment plans initially entail identifying key talent, defined as individuals and groups who are essential to retain and re-recruit during a transitionary period and those required for long-term value creation.

Originality/value

The articles describes best practices for post-deal M&A activities companies could perform better including operations and technology integration, communication, cultural analysis and integration, talent management and retention, senior leadership involvement and measurement and reporting.

Details

Strategy & Leadership, vol. 49 no. 2
Type: Research Article
ISSN: 1087-8572

Article
Publication date: 9 April 2019

Timothy Galpin

The gap between management theory and practice has been much criticized. To help bridge the divide, a synthesis of empirical, theoretical and practice literature is…

2608

Abstract

Purpose

The gap between management theory and practice has been much criticized. To help bridge the divide, a synthesis of empirical, theoretical and practice literature is offered, along with an application of the widely used VRIO framework, to contend that developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.

Design/methodology/approach

A synthesis of empirical, theoretical and practice literature is presented, beginning with a discussion of why and how firms diversify; the relative performance of firms that pursue related and unrelated diversification; an application of the resource-based view, core competencies and the VRIO framework; a description of focused corporate parenting as a core competency; a prescription for how diversified firms can implement a focused corporate parenting approach; and implications for research.

Findings

Developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.

Research limitations/implications

The synthesis of empirical, theoretical and practice literature presented provides a foundation for future research into the impact of focused corporate parenting on diversified firm performance.

Practical implications

The paper includes a prescription for how diversified firms can implement a focused corporate parenting approach.

Originality/value

The application of the resource-based view and core competency theories to corporate parenting provides managers with the rationale for and methodology to focus their corporate parenting activities.

Details

Journal of Business Strategy, vol. 40 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 12 June 2019

Tim Galpin

This paper offers an approach to deal with the value destruction caused when culturally incompatible organizations merge.

Abstract

Purpose

This paper offers an approach to deal with the value destruction caused when culturally incompatible organizations merge.

Design/methodology/approach

A field-tested Cultural Comparison and Integration Model is demonstrated. 10;

Findings

The model illustrates how managers can compare and integrate cultures of combining firms using “cultural levers”.

Practical implications

A case example of the model in practice is included.

Originality/value

The model has been tested in a large and medium size organizations in a variety of industries and nationalities.

Article
Publication date: 4 January 2008

Timothy Galpin and Mark Herndon

The company closed the deal over two‐years ago, but the organization is still not operating as one company: results are lagging, customers are defecting, and shareholders

6220

Abstract

Purpose

The company closed the deal over two‐years ago, but the organization is still not operating as one company: results are lagging, customers are defecting, and shareholders are restless. Management thought that they checked off all of the right deal actions, including: a thorough due diligence (operations, finances, systems, and people); assigning appropriate integration resources early and keeping them available throughout the integration process; developing and executing detailed integration plans; and measuring, tracking, and reporting implementation progress against the integration plans. But, somewhere, somehow, something went wrong – and it has to be fixed, or else. The transaction itself was completed too long ago for any action now to be truly considered “post‐deal integration.” The situation the company now faces is “merger repair.” Unfortunately, they are not alone. Numerous, well‐intentioned deals have gone sour either due to gross negligence or because of a series of small – but in aggregate very powerful – mistakes and/or delays. This article provides a method to identify whether or not a company is in need of “merger repair,” and an approach (including supporting tools and templates) to perform the needed “repairs.”

Design/methodology/approach

In working with numerous clients on merger integration efforts we have identified that, not only do many companies struggle with their immediate M&A integration efforts, but they also suffer chronic performance issues caused by past integration efforts that have been allowed to linger and/or have been managed poorly.

Findings

Conducting M&A integration efforts poorly creates lasting business performance issues (e.g. poor customer service, lower than desired productivity, lack of cost control, and/or unrealized revenue improvement) long after a deal is closed. Almost half (49 percent) of the respondents to The University of Dallas Graduate School Of Management's, 2006 Mergers and Acquisitions Survey – The Current State of M&A Integration (including 124 executives and managers from 21 different industries), indicated that their company is in need of “merger repair.” There are two key tracks of “merger repair” companies can pursue to first get the business back on track, and then to improve the organization's future M&A integration competency.

Originality/value

This article advances the current theory and practice of post‐merger integration that, up to this point, has focused exclusively on integration activities conducted immediately (i.e. within the first 6 to 12‐months) of deal close. This article also addresses how to identify and address integration issues that still exist two or more years after a deal is closed, by providing pragmatic tools and templates that practitioners can immediately apply to both identify and resolve situations of “merger repair.” Lastly, the approach described has broad application to companies across multiple industries and geographies.

Details

Journal of Business Strategy, vol. 29 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 January 1997

Timothy J. Galpin

Al “Chainsaw” Dunlap's recent announcement of a 50% job cut at Sunbeam aside, “growth” has replaced “downsizing” as the dominant strategic focus throughout American…

Abstract

Al “Chainsaw” Dunlap's recent announcement of a 50% job cut at Sunbeam aside, “growth” has replaced “downsizing” as the dominant strategic focus throughout American business. Mergers and acquisitions, new market penetration, mass customization, enhanced customer service, strategic alliances, and the like are all in the sights of businesses large and small. But while activities focused on the cost side of the profit equation represent a relatively simple “strategy” to pursue—thanks to armies of consultants churning out graphs, charts, and tables recommending head cuts—growth strategies present management with an even greater challenge: how to make their strategies work.

Details

Journal of Business Strategy, vol. 18 no. 1
Type: Research Article
ISSN: 0275-6668

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