Decision Paper for a meeting of the Board of Victoria Bank
9.00am 8th May 2017
Deakin University, Burwood Campus
Recommendation:
That the board approve the Adaptive Integration Plan and associated staffing and budget changes at VicInnovate.
Subject: Adaptive Integration at VicInnovate
Purpose: To inform the board of the key people management challenges at VicInnovate over the coming eighteen months, as well as providing a series of solutions to the issues identified and to request approval of the Adaptive Integration Plan at VicInnovate.
Key Risks, Management Challenges, Solutions.
Challenges
Turning ten disparate groups into one cohesive team.
Loss of staff
If the heads of each functional area comes from Victoria Bank and brings the rigid policies, procedures and tools from the Bank – start up staff may be put off side and a bad culture will establish.
Politics will be a dominant feature of the work environment as new coalitions form. Some personnel may be forced out.
Personnel from start ups will likely feel disempowered as most sources of power are held by Victoria Bank personnel.
The young entrepreneurs may all be very different. They cannot be lumped together and may enjoy the technology, innovations and development aspects of their roles.
Early engagement is key to avoid losing talented staff.
Loss of momentum and innovation
The restructure may undermine the creativity of start ups and results in ineffective or inferior products.
Ideas become too alike from creative people now working in close proximity.
Asking everyone to move to one central location may create problems for some.
The additional rigidity and structure around the start ups may inhibit their innovation and ability to remain dynamic and agile.
VicInnovate becomes unviable
Stratification – into subcultures, startup cultures remain strong, subversive culture against VicInnovate and/or Victoria Bank.
Infighting, competition for resources, undermining key staff, sub-cultures, negativity, stronger links/loyalty remain to start ups than to VicInnovate.
Productions slows, or products become too costly to produce, Costs increasing
Victoria Bank and VicInnovate become at cross purposes.
Solutions
A structure that supports innovation, drive and success
Groups and teams: size and structure of optimal innovation.
Ensure Victoria Bank personnel possess the right personal attributes and position characteristics to be able to influence start up personnel
How the merger will be communicated and rolled out, how will roles be assigned, will staff be axed and if so, how will decisions be made and implemented, what will change, how and when.
Review how are start-ups already aligned? Can synergies between the startups be enhanced so that momentum continues?
Planning for Organisational cultural principals – Typology of culture must remain different from the Bank. Must allow for flexibility and discretion through an adhocracy culture.
Cultural change plans – for both bank staff and for start ups
Make it easy – support employees in owning how the change will impact them and their families for new work place, support them moving,
Founder influence and team size have a profound impact on startup performance. Therefore consideration should be given to still allowing startups and entrepreneurs an element of freedom and independence to help promote innovation.
Prior training for Victoria Bank managers who will be overseeing the integration process at VicInnovate. This will give them an expectation and awareness as to what to expect around the cultural and organisation differences of startups, and empower them with tools and skills to manage and influence completely different types of people, subcultures and groups.
Effective communication to increase employee confidence
Internal communication infrastructure must be viewed by all employees as reliable and trustworthy, and implemented as soon as possible after the merger is announced – Employees exhibit more commitment to organisational change with effective communication.
During a M&A the principal cause of fear, uncertainty and lost productivity is the lack of trustworthy information.
Strategy and governance is clearly communicated effectively to all stakeholders
Create certainty by training managers before rolling out to all employees
Divergent operating principles are addressed.
Create layers of communication, in a variety of mediums to reinforce key messages
Unyielding focus on employees and retention
Establish a positive culture
Establishment of good values and identification with VicInnovate (over startups and VicBank), engagement with employees to establish fundamental beliefs, assumptions and shared values of VicInnovate.
Retreats, focus groups, mediator lead training sessions to work together to establish “who we are” and “how we do what we do” group identity for VicInnovate together with the new working sectors through R&D, Products, Marketing etc.
Make the new work environment fun and supportive of the work being done – good architectural building and work spaces collaborative and private – built for function.
Socialisation activities planned – communal eating areas, plans for activities throughout integrations and for first 12 months.
Utilise the current leaders in start ups to be role models of culture within VicInnovate.
Ongoing support and mentorship
Cultural surveys to measure satisfaction/dissatisfaction and alignment to cultural norms
Consistent open communication applications – continue focus groups, established intranet, newsletters, regular updates
Strong induction, onboarding processes established
Growth of cultural representations – artefacts and creations
Timeline
Our timeline must be well communicated and regularly updated to respond to changing circumstances throughout the 18 month implementation process.
We have established a series of ten action items nested within our Integration Cycle shown below.
These action items set the direction and structure of engagement throughout the 18 month timeline for integration.
May 2017
Establish the Planning Framework
1. Define an End-to-End Model
2. Continuously engage the Executive
June 2017
Frame the Starting Point
3. Formally Launch the Process
4. Challenge the Teams
September 2017
Shape the New Company
5. Articulate the Operating Model
6. Communicate Purposefully
November 2017 – DAY ONE
Develop the plans for Day One and Beyond
7. Tailor the Change Management Approach
8. Maintain Integration Process Continuity
First 12 Months
Sustain the Process
9. Closely Track Initiatives and Dollars
10. Align Outcomes with Incentives
November 2018
Decision
Action Item:
We move that the board approve the Adaptive Integration Plan and associated staffing and budget changes at VicInnovate.
When seeking solutions, our team engaged deeply with a range of interested stakeholders, and we thank the following parties for their time.
The CEO, Kate Williamson and her Executive team.
The Direct Line Managers involved in this transition.
The Employees of both Victoria Bank and the ten start ups.
These robust conversations have encouraged teams to step out of their ‘silos of excellence’ and consider the people management issues through the lens of other stakeholders perspectives.
This in turn creates ownership of the issues and helped craft our Adaptive Integration Plan to ensure we have considered the needs of all parties.
With the support of the Board, we have confidence that VicInnovate will become a leading example of agile thinking within Victoria Bank, acting as the incubator for future change within the organisation.
We trust that the Adaptive Integration Plan will smooth the transition of our ten innovative partners into the Victoria Bank family and seek your endorsement of our plan.
vicinnovate 