Pre- And Post-Enron Learnings On Learning In M&A Environments - A Qualitative Study In Preparation Of A Dissertation On The Influence Of Management Andragogy On Executives Ability To Successfully Manage M&As

Abstract

In a global economy characterized by convergence and consolidation, by shareholder pressure, by the war for talent, for knowledge and for customer bondage, Merger and Acquisition transactions (M&As) are seen as a fast, efficient and spectacular way to innovate. M&As are therefore a frequently used strategic tool for corporate development. However, as of now, more than 75% of all M&As fail to meet objectives and 50% even destroy shareholder value.

M&As often fail due to poor leadership. Therefore M&As seem to require particular leadership and management competencies, namely the ability to lead through and manage transitions in which the manager him/herself maybe transitional (Sahl 1998). Management Andragogy, the self-directed, incentive-driven, intercultural interdisciplinary management training that builds on executives experience is known to develop managers leadership and management ability.

In preparation of a dissertation on the influence of management andragogy on executives ability to successfully manage M&As this qualitative exploratory study investigates in the success and failure factors of M&As, the reasons for failures and success and the management and leadership competencies favoring success, It also looks at what skills need to be developed to achieve M&A success and explores how to develop them. The study was done before the Enron and WorldCom collapses and the Arthur Andersen failures had shaken the business community. In order to test the impact of these incidents on the investigated subject the author decided to return to the interviewees right after the WorldCom debacle to ask them the same questions again.