(core competency)Flat and efficient organisation structure.. Strong sense of Teamwork & learningHigh Quality skilled technical employeesRelatively low level of employee engagement Little standardization of operating practices Low employee engagement Strong Financials & Cost Management
Increase scale & service range of operations (enhance market share and revenue)Taking over the competence and value set of the executive team in call up
Degree of integration
Engagement of Employees: Encourage team work and knowledge sharing, including best practices sharing Loyalty transfers: Incentive packages for key employeesReduction of supervisory and management staff relative to hourly employees in acquired call centers Lower OH: Restructuring organization to decentralize functional staff in IT and Human resources onto the operating locationsProvide the Masseys with appropriate consulting/advisory roles within area of expertiseEliminate duplicate positions and provide appropriate severance packages for senior employees
So we will now move on to talk about the key risks associated with the acquisition and what actions can be taken to mitigate these risksOne key risk is a drop in employee morale and erosion of positive working culture due to poor cultural fit. This could be amplified by employee concern over job security and unequal compensation. The best way to mitigate these risks is to carry out an assessment of the similarities and differences between the cultures in the two companies and formulate specific integrative plans accordingly, as well as initiating communication with Call-Up’s employees as soon as possible.Another significant risk is that Call-Up’s rivals can exploitation of the transition phase at Call-Up as it attempts to negotiate contracts with its current customers at higher rates with little improvement in efficiency and service levels. An mitigating action in response to this would be to reassure key clients of their immediate plans and proceed quickly with operational improvementsAnother potential pitfall is the loss of business momentum at Pegasus itself as key staff lose focus during the time of acquisition. Pegasus can reduce the risk of this happening by hiring an external consultant to support the Chief Operating Officer as she spearheads the integration process so she remains in control of existing operations.The final major risk is that profitability will fall in the longer term.In order to prevent this we suggest the early transfer of Pegasus’ operating practices and replication of hiring and training policy in the newly acquired units.