MMIS MERGER: AUTHENTIC

TRANSFORMATIONAL
LEADERSHIP

INTRODUCTION
Momentum
Metropolitan

BACKGROUND OF THE
MERGER
This merger was formed in 2010 by two South
Africans insurer

Provides the service in 12 nations

Its products include asset management,
employee benefits, life insurance, and
managed healthcare administration

MERGER
RATIONALE

COMPARISON OF MOMENTUM AND METROPOLITAN

UNBUNDLE OF SHARES

FIRSTRAND

METROPOLIT
AN

FIRSTRAND

REDISTRIBUTION OF
SHARES
Chart Title

METROPOLITAN; 41%
FIRSTRAND; 60%

FIRSTRAND
METROPOLITAN

MARKET COMPARSION PER AND POST MERGER

SEPARATION OF ENTITIES

MERGER RESERVATION
No effect on shareholder Price
Who was taking over whom?
Different culture
Required efficiencies

MERGER PROCESS
Wilhelm van Zyl Vision for Metropolitan

Partnership, combinations, and non-standard

affiliations

Van Zyl and Kruger approached each other

Merger talks were started
Business Model & Restructuring of Portfolios

APPOINTING THE MMI GROUP CEO

At executive level there was vagueness due to

change process

Trust, Integrity, Purity of Intent Consequences of

Different scenarios

There could only be one CEO

During initial phase, van Zyl and Kruger jointly
managed the change process

Eventually, Kruger became the CEO

TRANSFORMATIONAL
LEADERSHIP
implemented a structured communication
process

They made brief which provide answer to

potential question

Transparency of the brief

IMPACT OF VARIOUS INFLUENCERS DURING

SPECIFIC STAGES OF THE MERGER PROCESS

Leadership communication and the

management of organizational change

Leadership communication and the

management of organizational conflict

Leadership communication and the

management of corporate culture

ORGANIZATIONAL
CHANGE
a good organisational relationship including
each member

attaining such an environment is the

establishment of trust and honesty

while each organisational member should

promoteloyalty and reliability.

ORGANIZATIONAL
CONFLICT
Organizational members may perceivean
M&A activity as a conflict, it is imperative for
the success of the organization

CORPORATE CULTURE
moment of truth for management
it will be visible among members of the

organisation in the sense that they will

striveto meet organisational objectives and
display positive behavior if they succeed.

MMI HOLDING
a laser focus on messagesand a solid

commitment from leadership to

communicatewith employees from both premerger companies can help to assuage fears,
prevent negative chats around the water
cooler, and ensure employee loyalty during
the sometimesturbulentM&A process.

CHIEF INTEGRATION OFFICERS LEADERSHIP

ROLE

Danie Botes was appointed as the MMI chief integration

officer

A true merger was a different task as compare to take overs

Decision making power was a critical issue
A recruitment drive was launched to appoint staff to their
new positions

CHIEF INTEGRATION OFFICERS LEADERSHIP

ROLE

The main differences in culture existed in area of

management style

Values which formulated during the survey were

accountability, innovation, integrity, teamwork,
excellence and diversity

It was decided that staff will not reduce for two years

MERGER COMMUNICATION
Bi-Weekly Briefing Sessions
To kill the grapevine
Regular and timely communication built
confidence

Exco delivered its promise of providing

answers

Messages of both CEOs cross-checked and

expedited

 Soft issues were often the hardest

Change process was managed well
Still not all stakeholders were on-boards
Many positions had to be rationalized

CHALLENGES AHEAD
Both cultures were jelling in
And most of the expectations turned out to be true
But there were still great challenges to cope with
Multi-racial workforce
Ailing Economy
Increasing Unemployment
Decreasing Disposable income

Kruger was faced with a task to break-out to the

employees about structural re-organization

KOTTERS CHANGE MODEL

& MMI
Create Urgency

Merger would add value by increasing market

share

Form a Powerful Coalition

Partnership and trust between Kruger & Van Zyl

Create a Vision for Change

Communicate the Vision

 Remove Obstacles

Effective communication, steering committee, CIO

Create Short-Term Wins

Stakeholders on-boarding, seamless integration

Build on the Change

Analysis after each success, continuation of

momentum

Anchor the Changes in Corporate Culture

Structural re-organization

THATS ALL
FOLKS!