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The Merger of Green Innovation & New Wave Property Management

By,
TKKJ Consultants

Therese Petersson, Kalindi Mangeshikar, Kailey Trippel


and James Dalley

Who are we?


TKKJ was founded in New York City in 1975
Highly successful in helping management teams
create high economic value

Works across all types of industries with all types of


clients

Our result focused approach has helped us to redefine


the industries we have been navigating companies in

Ranked as #1 Best places to work on Glassdoor


Employees Choice Awards 2012

Consultants
Therese Petersson Human Behavioral Specialist
brings a rich understanding of people and how they behave, clear analysis grounded in our extensive
research and bold ideas backed bypractical experience with the aim of building a high-performing HR
function in support of your business goals.

Kalindi Mangeshikar Merger and Acquisition Specialist


ensures that effective organizational change is achieved, as well as assists in the creation of a
change management culture where change initiatives become part of the continuous improvement of
the organization.

Kailey Trippel Strategic Marketing Specialist


has designed, implemented and managed strategic marketing and communication programs and
contributed her expertise in a voluntary capacity to a range of not for profit providers which resulted
in increased brand awareness and growth in funds and services.

James Dalley - Operations Manager


brings the hands-on industry experience required to pinpoint operational strengths and weaknesses,
and identify and deploy proven methods to generate measurable, sustainable improvement.

TKKJ Consultants
Comprehensive Strategy
Pre-Merger collaboration on integration strategy
Involvement and engagement for new identity formulation
Determine shared vision
Analyze current reality in line with strategy
Create ownership in the process
Implementation - Build and create momentum
Maintenance Focus direction and energy towards new
identity

Re-evaluate and re-create when necessary

New Wave Property


Management
Commercial Real Estate Company based in New
York City

Founded in 1916
Provides coordination of property management
and repairs, tenant communication and
correspondence and ensuring that their clients
investment gets the best return possible

Provides physical maintenance of properties by


different services such as renovation and
improvements and negotiation of contracts

Green Innovation
Growing and dynamic green industrial supply
company based in New York City

Founded in 1995
Provides innovative and environmentally-friendly
solutions for building and renovating properties

Specialized in healthy building conversions, energy


efficiency and renovation of landmarked buildings

Provides building energy audits to asses and ensure


efficiency

Structure and Size

Structure of New Wave


Property Management
Hierarchical
Centralized
Highly departmentalized
Highly formalized
Bureaucratic design

Structure of Green
Innovation
Horizontal
De-centralized
Cross-functional departments
Low in formalization
Boundaryless organization

Size of New Wave Property


Management
Medium-sized company
8 departments
86 employees
Highly mechanistic
Multiple vertical levels

Size of Green Innovation


Small company
3 departments
34 employees
Highly organic
Few vertical levels

Conflicts
Downsizing of departments and employees
Restructuring of the organization
Employees feelings of nervousness and
insecurity due to the downsizing

Gaps in departments or overlapping in functions


Differentiation vs. Integration Approach

Solutions
Cross-functional training
Key responsibilities should be defined
Implement an imitation strategy
Inclusion of employees suggestions in the
merger process

Employ a more organic model


Encourage all levels of employees in the
decision making process

Organizational Culture

A Market-Driven Culture
New Wave Property Management would benefit most
from a market-driven culture

Main emphases are profitability and customer value


The market is the focus of all business decisions
and ideas

Requires a substantially larger investment of time


and money into knowing your customers.

The customer is the center of the business. The


customer is always right.

Mistakes and competitor paranoia are embraced.

Benefits of a MarketDriven Culture


Increases customer retention rates
Boosts consumer loyalty
Customer satisfaction is ensured through
customer-based decision making

The culture is highly sustainable if maintained.


It includes the customer and considers he/she to
be more than just a number.

Market-Driven vs. Self-Centered


Market-Driven
Focus is the customer
Creates value for the
customer

Boosts profitability
Increases customer loyalty
Decisions take longer and
include more consideration

More sustainable

Self-Centered
Focus is on pure numbers
(customer acquisitions)

Sell to anyone at any


cost, no matter how wellsuited they are to the
product or service.

Decisions are made


quicker

Less sustainable

Roadblocks to a MarketDriven Culture


Oblivion to the market
Employees who are too easily persuaded by the
natural ebbs and flows of the market.

Employees who feel like they can control the


market or are superior to it

Adhocracy
Green innovation would benefit from the
adhocracy business culture.

Alvin Tofflers described adhocracy as a culture in


which innovation was encouraged.

In adhocracy, specialization is done in the form of


group work.

Too much specializations stunts creative growth


Also, behavior cannot be too standardized for
fear of causing disruption to the creative process

The structure of
Adhocracy
Decentralization is the key.
In order for adhocracy to work, there cannot be
any defined hierarchical structure.

Because of this, most often seen in adhocracy, is


a web of managers who work collaboratively
with those in different departments.

Lines of authority are blurred

Merged Culture
Green Innovations adhocracy will bode well with
New Wave Property Managements marketdriven culture.

Adhocracies = vision-driven
Market-driven = profit-driven
Maximum profitability will result

Leadership Style

New Wave Property


Management
Authoritarian in nature whereby leaders:

Dictate policies and procedures


Decide what goals are to be achieved
Direct and control all activities of New Wave
Management without any meaningful
participation of their subordinates

Green Innovation
Laissez-faire leadership style in which leaders:

Give the least possible guidance to subordinates


in an attempt to achieve control through less
obvious means

Believe that people excel when they are left


alone to respond to their responsibilities and
obligations independently

Merger Concerns
What is the best approach to achieve optimal
performance?

How do we relieve any tension, resistance, or


conflict between teams and departments?

Democratic leadership
approach whereby leaders:
Allow for multiple viewpoints, inputs, and
participation, while still maintaining control and
the leadership role.

Recognize each member's strengths and


effectively elicits the best performance from
each member, all the while guiding and leading
effectively.

Recognize that not all tasks need to be handled


by the group and should be appropriately
addressed individually

How is This Achieved?


In order to cultivate a highly successful and
sustainable democratic workplace, we train our
leaders to be transformational in nature
whereby:

They encourage creativity and empower


employees by influencing feelings of positive
personal control
Engender commitment on the part of followers to
instill greater trust in the leadership.

Merger Leadership
Training Process
Assess leadership emotional competence by utilizing
the Emotional Competence Inventory (ECI)

Hold weekly seminars and workshops to track


progress and allow for 360 degree feedback

Implement strategies to improve transformational


leadership style
improve the way people express themselves (language),
which affects thinking
which manifests itself in attitudes
which express themselves in behavior

To achieve this and be effective in doing so,


these 10 principles must be put into practice
and supported by democratic systems and
processes:

Purpose and Vision

Transparency

Dialogue & Listening

Fairness & Dignity

Accountability

Individual & Collective

Choice

Integrity

Decentralization

Reflection & Evaluation

Benefits of a Democratic
Leadership Approach
Our approach will allow us to:

Be more adaptable, responsive, and sustainable


Inspire more loyalty, dedication, creativity, and
engagement

Be more aligned with the global trends toward


political, social, and economic freedoms

Inspire more loyalty, dedication, creativity, and


engagement from their employees

Minimize waste

Benefits of a Democratic
Leadership Approach (Contd)
Be faster where it matters - in the execution and
implementation stage

Be more successful at achieving bottom-line goals while


still encouraging work-life balance

Be more humane
Have more fun
Be more sustainable
Help build a more democratic world

Communication

New Wave Property


Management
Centralized
Prominent leaders gain more information

controls the flow of information can exercise a


great deal of influence

Employees mostly communicate within their


own departments

Green Innovation
Decentralized
Many channels and directions of information
flow

Rich upward communication


Open communication between group members

Concerns
Stress and emotions
Perceptual barriers because of differences in
personalities, histories and habits

Linguistic differences
Lack of information/information overload
Stay impersonal in a group of personality
clashes

Emotions that affect communication

Solutions

Solutions (contd)
We vs. The Problem
Teaching/learning opportunity

Solutions (contd)
Special teams and surveys
Physical barriers
Sensitivity training
Choice of communication channels
Awareness and focus

Follow up the Process


Avoiding grapevine communication
Provide de-personalized feedback
Stay honest
Give it time

Merger Goals
Growth and expand into new markets
Increase shareholder value
Capitalize on tax benefits
Achieve greater efficiency
Improve bottom line
Become a more competitive and cost-efficient
company.

Achieve synergy