WASHINGTON, Dec. 8, 2016 /PRNewswire/ -- With the presidential transition underway, a new Deloitte report released today recommends looking to mergers and acquisitions (M&A) for a disciplined approach to this complex and significant transfer of power. The report, "The Presidential Transition: Translating lessons from Mergers & Acquisitions," outlines similarities between M&A and the presidential transition as well as describes actions that government leaders can take ensure the continuity of operations and workforce integration learned from private sector M&A activities.
"Translating lessons from the business world to government challenges can be beneficial – especially in any situation where leaders new to government service come with a business background," said Bill Eggers, executive director of Deloitte's Center for Government Insights. "Identifying and deploying commercial insights successfully now requires a degree of what we see as 'bilingualism' — the ability to translate business to government and vice versa."
"While the sheer scale of a presidential transition is staggering with more than 4,000 political appointees, CEO transitions in the private sector occur much more often and companies are frequently undergoing drastic changes," said Greg Pellegrino, principal, Deloitte Consulting LLP, and a strategy leader in the federal government practice around M&A activity. "This greater frequency has offered a tremendous opportunity for learning and to us, begged the question: What can those involved in a presidential transition learn from mergers and acquisitions, both the successful and the not-so-successful? It turns out there is quite a lot."
The report is based on interviews with experts who advise, facilitate and manage M&A transactions and post-merger integration (i.e., activities in the months following the merger), as well as with those who have advised or experienced government transitions. Civil servants, transition team participants, and incoming political appointees may benefit from the translation of important lessons from the hundreds of M&A transactions that have occurred.
"During my years of M&A work, I learned one of the most important aspects to a successful integration is clear lines of communication, which is why this idea of bilingualism between business and government is so important," said Jessica Kosmowski, principal, Deloitte Consulting LLP and a federal strategy leader. "There is a difference in culture and in context that makes it so important for all parties to strive to become business-government bilingual. It is not that either side has all the answers, but that both could learn a great deal from the other if translation skills could be enhanced."
The report includes nine key transition tips for both "acquirers" and "acquirees" such as:
- Stabilize the workforce and retain critical talent: Workforce support will be essential to the successful execution of change. Identify and retain key talent early. Motivation and engagement will often benefit from identifying and tapping into the intrinsic values that drive employees' commitment. Build morale and avoid the exodus of essential institutional knowledge.
- Plan for an issue-free first day: The highly scrutinized first days of new leadership are critical in establishing relationships, trust and credibility. Avoid "flashpoints," the issues or events that carry disproportionate risk, and develop a mitigation plan. This avoids wasting time, energy, social capital, and focus to get back on track.
- Establish leadership and accountability: Identify ways to ensure continuity from due diligence to post-merger integration with executive and functional leadership. Establish clear roles, responsibilities, and accountability when it comes to integrating new personnel and new strategic priorities. Early interactions can be critical in establishing credibility and trust.
About Deloitte's Center for Government Insights
The Deloitte Center for Government Insights produces groundbreaking research to help government solve its most complex problems. Through forums and immersive workshops, we engage with public officials on a journey of positive transformation, crystallizing insights to help them understand trends, overcome constraints and expand the limits of what is possible. For more information, visit www.Deloitte.com/us/center-for-government-insights.
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including 80 percent of the Fortune 500. Our people work across more than 20 industry sectors to deliver measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society.
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