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Title: Making operational sense of mergers and acquisitions

Journal Article · · Electricity Journal

Mergers and acquisitions place a new requirement on many utilities. Not only must they be operationally efficient, but they must also be able to effectively manage internal change projects that results in the integration of new and acquired businesses. Evidence from US industry suggests that this is not an easy feat. However, careful planning of integration strategy, as well as taking the proper steps to design, develop, and implement integrated overhead functions, contribute significantly to successful M and A. Fundamentally, this means choosing the right integration organizational structure, picking the right overhead functions for integration, developing complete plans for integration, and thoroughly executing those plans. For the many utilities that are attempting to develop shared services operations, a number of specific steps can be taken to avoid common pitfalls. Key among these is to develop plans in a manner very similar to the establishment of new ventures. Communicating these efforts to the affected staff and garnering executive buy-in are key aspects of the change effort. Ultimately, utilities must track the impacts of these change efforts in cost savings and service quality improvements.

Research Organization:
American Management Systems Utilities Consulting and Systems Group, Fairfax, VA (US)
OSTI ID:
20006056
Journal Information:
Electricity Journal, Vol. 12, Issue 7; Other Information: PBD: Aug-Sep 1999; ISSN 1040-6190
Country of Publication:
United States
Language:
English